Paulo Santos writes for Seeking Alpha that “it seems likely that Apple will beat revenue guidance on account of SE sales.”
“This isn’t entirely surprising,” Santos writes, “since even 5 million iPhone SEs would add $2 billion in revenue, never mind 9 million ($3.6 billion).”
“Apple will show less deterioration in number of iPhone sold than expected, on account of SE units sold,” Santos writes. “Even though the iPhone SE is lower margin than the overall iPhone product line, the difference isn’t so large as to destroy Apple’s gross margins. This is a positive surprise.”
Read more in the full article here.
MacDailyNews Take: Yes. As we reminded this morning: “Importantly, iPhone SE counts toward iPhone unit sales, too.”
SEE ALSO:
Analyst downgrades Apple, says company has ‘peaked under the leadership of CEO Tim Cook’ – July 25, 2016
Jim Cramer expects ‘not great’ earnings from Apple tomorrow – July 25, 2016
Could Apple surge 10% after earnings tomorrow? – July 25, 2016
Apple is ripe for a rally – July 25, 2016
All eyes on Apple as avalanche of quarterly reports from Silicon Valley begin – July 25, 2016
Apple to release Q316 earnings, webcast live conference call on July 26th – July 22, 2016
MacDailyNews presents live notes from Apple’s Q216 Conference Call – April 26, 2016
Apple reports earnings miss in Q216 – April 26, 2016
MacDailyNews presents live notes from Apple’s Q116 Conference Call – January 26, 2016
Apple reaps $18.4 billion quarterly profit, the largest ever recorded by a single public corporation – January 26, 2016
Apple beats on earnings; sets all-time records for revenue, net income, and EPS – January 26, 2016
How do we know what iphone SE’s margin is ?
By tearing down the unit and calculating the cost of components, you can work out the gross margin.
Somewhat but not reliably.. No one but Apple knows all apples component costs and contract terms. And its a pretty complex supply chain.
It won’t stop the guessing and it will never go in favor of Apple. Apple’s economies of scale have practically disappeared as far as Wall Street is concerned.
God saves Apple from sinking down. Amen.🌹🍷
🍷🍷🙏🏼
In other news, Tesla up nearly 3.5% due to the likely Solar City merger. You won’t see any good news like that for Apple shareholders. Only bad news about shrinking profit margins.
Apple has a lose-lose situation going for them. The cost of regular iPhones are too high, so sales numbers slip. The cost of the iPhone SE isn’t high enough, so profit margins suffer. Apple seems to be the only company losing value no matter what they do. It’s no wonder investors won’t touch the company.
If that were true, then how do you explain the recent uptick in AAPL? You can’t have it both ways.
If you don’t understand how the market works it’s real easy to explain something as a sooper seekrit conspiracy led by a vast array of unknown and diabolical forces.
Some of us would not be at all surprised if the SE sales figures are impressive Ever since the large screen smartphones appeared, I’ve been saying that it’s a trend that doesn’t suit everybody. Before smartphones, being smaller was the sign of a more desirable and sophisticated cellphone. While I can see the advantage of a larger screen ( for those who don’t also have an iPad or Apple Watch ) I can also see the advantage of a phone that’s small enough to carry without being intrusive.
Different users have different preferences, but I think that there is a much bigger market for small phones than most people imagined.
Hopefully the SE, alone in its category (the only 4” supercharge cell phone in its market), will show WS anals some good…
Oh, I forgot, these anals are anals for life anyway. They will find a excuse to bring the stock down…