“In the first nine months of 2015, Apple’s total sales was $73.08 billion in 2015 and this year it has only made $66.45 billion, a full $6.6 billion less than it did last year,” Shudeep Chandrasekhar writes for GuruFocus. “The sales decline was not a country-specific or region-specific one.”
“On the product side, iPad picked up some momentum during the quarter, and revenues from the tablet increased by 7%. As iPads are more expensive than iPhones, they provide better margins for the company,” Chandrasekhar writes. “Although iPad revenues increased, the total number of iPads sold actually went down, which means people are buying the higher-priced ones. That’s a positive sign for the company; it will help expand its margin even though sales were 9% down from the year-ago quarter.”
MacDailyNews Take: Better, even more powerful and capable iPads (with more RAM) and “iOS Pro,” please!
“Sales of iPhones are responsible for more than 50% of Apple’s revenues, and this is the segment that will determine the company’s overall performance. During the third quarter, the company started shipping iPhone SE, the low spec/low cost iPhone, which was lapped up around the world with demand outstripping supply through the quarter,” Chandrasekhar writes. “When you sell more products at a lower price point, your margins are, of course, going to take a bit of of a hit. The average selling price – or ASP – for iPhones was $595, a full $65 less on a year-over-year basis, though the company attributed $20 of the $65 to foreign exchange. Apple expects ASP to improve next quarter.”
“Right now, Apple is at a point where it has the opportunity to grow users,” Chandrasekhar writes. “If it can do that while increasing revenues at the same time but lose a few percentage points on margins, it should double down on that.”
Read more in the full article here.
MacDailyNews Take: iPhone SE is not a “low spec” iPhone. That is in large part exactly why it’s successful. iPhone 5C “failed” to achieve the same measure of success as the SE precisely because it was a “low spec” iPhone.