Apple’s decision to stop reporting unit sales of iPhones, Macs, and iPads is a ‘defining moment’

“Apple’s decision to make major changes to its reporting structure from the next quarter — and stop reporting the break-down on unit sales — is a “defining moment” in the company’s history, according to an analyst,” Saheli Roy Choudhury reports for CNBC. “The iPhone-maker is making a transition from being a big hardware player to a services business, Jay Srivatsa, CEO of Future Wealth, told CNBC’s ‘Squawk Box’ on Friday. He explained that most of the tech giant’s hardware products in recent years have been ‘evolutionary’ instead of ‘revolutionary.'”

“Apple reported earnings for its fiscal fourth quarter Thursday that beat Wall Street estimates on earnings and revenue,” Choudhury reports. “But shares fell after the company missed shipment estimates on iPhones, offered light guidance and said it will no longer break out individual sales numbers for the iPhone, iPad and Mac.”

“‘Barring a major introduction of a new product, like an iPhone, in the next few years, we’re not going to see the company’s hardware revenues grow in any big fashion,’ Srivatsa said. ‘It becomes a services business. I think part of the reason why they’re no longer going to split it up is because of that transition that the company’s going to go through,'” Choudhury reports. “‘I think this is a defining moment in the company’s history going forward,’ he added.”

Read more in the full article here.

MacDailyNews Take: Wall Street can pitch its little hissy fit over losing their beloved unit sales figures (don’t worry, they’ll make them up on their own and call them “estimates”) and, while they scream and whine and stamp their feet, we’ll gladly partake in any AAPL discount sale that results.

And, by the way, Apple has already proven they can be both a big hardware player and own a huge, growing services business. No “transition” from one to the other is necessary. If losing unit sales is what it takes to finally wake analysts up to the enormity of Apple’s services business, so be it.

SEE ALSO:
Apple to stop reporting iPhone, Mac, and iPad quarterly unit sales – November 1, 2018
Apple tumbles 7% after reporting record-breaking quarterly earnings – November 1, 2018
Apple beats Street with another record-breaking quarter – November 1, 2018

15 Comments

  1. The analysts should be happy! They are terrible at guessing unit numbers anyway. APPL gets punished because of lousy guesses and or intentional manipulation.

  2. sprawling hardware revenues.
    growing software revenues.
    soaring services revenues.
    hardware. software. services.
    hardware. software. …
    Are you getting it? these are not three companies, this is all one copany! And we’re call it – Apple.

  3. Pretty amazing that his “analyst” say “’Barring a major introduction of a new product, like an iPhone, in the next few years, we’re not going to see the company’s hardware revenues grow in any big fashion,’ Srivatsa said. ‘It becomes a services business.'”

    A “service business” with 60% of its revenue and at least 60% of its net profit from the many hundreds of millions of installed iPhones that get replaced every few years for newer more expensive iPhones, and its growing installed base of desktop and laptop and appliance computers and tablets which lead their industries in total profits, and now growing tens of millions of users of Apple HomePods and Apple Watches, which are also upgraded every few years. These now insignificant hardware products account for about 80% of Apple net income and revenues. And this 80% is growing in pure dollars. But, according to this yahoo Apple will now be a “service company” dominated by the 20% revenue, which is also growing. Most of the service revenue is in support of the hardware sales.

    The analyst is a goof. But Apple is smart to stop breaking out the hardware unit sales since there are an abundance of stupid analysts.

    1. Stupid analysts aside. The message is that their Market Share was shrinking globally for years consistently, but unit sales were increasing, now even unit sales is flat or decreasing and other brands catching up considerably i.e. https://www.statista.com/statistics/263401/global-apple-iphone-sales-since-3rd-quarter-2007 . The primary factor for revenue growth is price hikes and services. If Apple can’t perpetually convince decreasing number of buyers to pay higher, or get back to earth and compete a bit on price, they will not grow.

      1. Last year each quarter produced record revenues and record profits. This most recent quarter produced a 40% Year over Year increase in profits. Obviously its almost over for Apple.

      2. like with (Samsung or whoever’s) dishwashers, which are only replaced when they leak or break down, there’s still a refreshment market (not just replacement market) for smartphones whenever there’s some real advance. Unlike with dishwashers, there’s massive improvements and even extensions to applications in Apple’s “phones”. Without the leaks…

    1. There is no mobile phone or computer manufacturer that provides unit sales details for each of its products. None now that Apple has stopped feeding the Fake News media.

  4. Hard to put a positive spin on this news.

    Simple fact is that sales are slowing. Apple would prefer to move the focus away from unit sales to total sales which includes service sales. If services pick up the slack Apple’s strategy will work. If not?

  5. Used to be a long list of new features that people wanted for their next iPhone upgrade and the OS….now that list is much skinnier, as the new iPhone pretty much does everything except comb your hair. They are also super high quality and last longer…therefore a wider upgrade cycle time period. C’mon people, Apple can’t invent the wheel every two years. Thus,
    a focus on transitioning and becoming a tech GE with Services as the heartbeat of all the eco-hardware surrounding it. Apple is slowly moving from a growth tech stock into an impenetrable long term GE…so expect the stock to also transition. The core long term investor will reap…today I would expect Buffet to buy bigtime.

  6. The analysts all have their parties in a wad because this is one less hook they can hang an Apple to create volitilty in the stock – because the investment industry needs that for them to make money via sales commissions on trades – Apple’s numbers were a total blowout across the board – increase in revenues & EPS in a company already that large is just insane – so they have to focus on one meaningless number to spin the stock negatively – such bullshit!

  7. I track as much of Apple news as I can take the time to do so. I’ve only seen one place so far, and I think it was a quote from Maestri (CFO) saying NO competitor reports unit sales, i.e. ONLY Apple reports unit sales for phones. To me this is significant and blows away virtually all the negative comments. And, oh btw, revenues and profits both BEAT this past quarter. The analista that track Apple have for years allowed the stock to carry an absurdly low PE relative to any real or imagined competition. Dumb.

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