“Apple reported its June quarter results after the close on Tuesday. Overall there are more positives than negatives, which along with the relief that business didn’t get worse is why the stock was up over $6 to $102.95,” Chuck Jones writes for Forbes. “While I don’t expect EPS estimates to increase very much, the better than expected results and guidance should help the psychology and valuation metrics on the shares.”
“Apple ‘sold’ 40.4 million iPhones in the quarter, which was down 15% year over year, the second quarter in a row of declining unit sales. However when adjusted for a 4.1 million unit channel inventory reduction the year over year decline would be 8% vs. last quarter’s 14%,” Jones writes. “Management expects the adjusted decline to be less in the September quarter but I don’t expect it to become positive unless the iPhone 7 does better than expected.”
“Analysts were forecasting 8.9 million iPads to have been sold and the company moved almost 10 million, 9.95 million to be exact,” Jones writes. “Combined with an ASP of $490, up $60 from last quarter’s $430 the iPad’s revenue of almost $4.9 billion was over a billion dollars higher than what was projected. While units declined by 9% year over year this was better than the double digit unit declines of the past seven quarters. And revenue showed positive growth of 7% for the first time in 10 quarters.”
Much more in the full article here.
MacDailyNews Take: All eyes turn towards autumn. Will Apple’s next-gen iPhones be mere placeholders until next year’s 10th anniversary models or will they be truly lustworthy or somewhere in-between?