“On Tuesday (May 2), Apple, Inc. announced its fiscal second quarter earnings, and the market reacted negatively. In spite of increased earnings per share ($2.10) that beat, many writers focused on the negatives,” J. M. Manness writes for Seeking Alpha. “he share price was down for several days, but on Friday returned to growth, rejecting this way of thinking, and with good cause.”

“I will not argue that this is a great quarter. It wasn’t. But neither was it a bad one,” Manness writes. “It was good quarter in which the positives modestly outweighed the negatives.”

“One important thing to note is that Apple actually sold more iPhones than it did a year ago. This is IF by ‘sell’ you mean sell to the customer. This is different from Apple’s reported figures,” Manness writes. “Reported sales is only a measure of units into the channel. If there is a significant change in the number of units in channel inventory, then reported sales will not match real sales. And this precisely was the case. As noted in the earnings call, this year drawdown was 1.2 million units vs. 450,000 last year. So adding the two figures back in and we see… narrow growth over last year, which is better than a narrow loss.”

Read more in the full article here.

MacDailyNews Take: Appel sold more iPhones to customers this year versus last even amidst the beginning of The Mother of all iPhone Pauses.

We’re seeing what we believe to be a pause in purchases of iPhones which we believe are due to the earlier and much more frequent reports about future iPhones. That part is clearly going on and what’s going on behind the data. – Apple CEO Tim Cook, May 2, 2017

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