“After the bell on Tuesday, Apple reported its fiscal second quarter results for the period ending April 1st,” Bill Maurer writes for Seeking Alpha. “The first thing that stands out is that iPhone unit sales came in at 50.76 million, about a million and a half units short of Street estimates. As I’ve detailed in many recent articles, it is certainly possible that consumers hold back on purchases as they wait for this year’s new phone(s) that are supposed to be major upgrades.”

“With iPhone units being a little light for Q2, I was not surprised that Apple’s guidance was below expectations. The company is forecasting revenues of $43.5 billion to $45.5 billion, and the top end of the range is just below the Street’s current $45.57 billion average,” Maurer writes. “The iPad did a bit better than expected, more than 8.9 million units versus an expectation for around 8.6 million. Mac sales came in at 4.19 million, a little light compared to estimates of 4.26 million. However, both product lines saw increases to their average selling price, with Mac ASPs up almost 10% over last year’s period, leading to a 14% rise in Mac revenues for the period.”

Apple CEO Tim Cook

Apple CEO Tim Cook

“Additionally, Apple’s services segment missed revenue forecasts by almost $100 million, while still showing 17.5% growth, but that was more than offset by ‘other products’ that came in around $650 million ahead of estimates,” Maurer writes. “On the bottom line, Apple had a nice 8 cent beat, primarily driven by lower-than-expected operating expenses, a lower-than-expected tax rate, and more “other income” than expected. EPS was up 20 cents over the prior year period, with about half due to better net income and the rest from the buyback.”

“In the end, Apple had a decent report on Tuesday, but it wasn’t good enough to keep the past year’s rally going,” Maurer writes. “While the company had an impressive bottom line beat, iPhone unit sales were light and the rest of the business couldn’t make up the difference.”

Read more in the full article here.

MacDailyNews Take: This is what not having enough new/updated products ready to sell gets you.

Cook’s Apple continues to look lazy and unprepared. Luckily for him, the money train Steve Jobs built keeps chugging along, masking the issues that longtime observers of the company can see, and have been seeing for quite some time, with crystal clarity. Would that Tim Cook had such crystalline focus on Apple’s core businesses instead of ancillary endeavors.

Apple needed/needs new iPad Pro models, new desktop Macs, AirPods in sufficient supply, and a 4K Apple TV. They needed them last fall in time for Christmas 2016. Failing that, they at least needed them in Q217. That much is painfully obvious. That they still don’t have any of them in May 2017 is evidence of blatant mismanagement that should worry even the most casual Apple investor/fan.


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