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Apple Reports Second Quarter Results

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Re: Apple Reports Second Quarter Results

#21

Post by heimatau »

jonknee wrote: post #15
heimatau wrote: post #14

Earlier quoted context omitted.

This is not true. The mega-wealthy aren't needing to sell their assets because the Fed is doing unlimited QE. Since the mega-wealthy own most stocks, they don't need the liquidity when their "stable" investments are backed by the Federal Reserve's unlimited free money program. This is crony capitalism.

... The Fed hasn't bought a single share of stock.

> ... The Fed hasn't bought a single share of stock.

1. This is actually currently being debated within the Fed. 2. I didn't say the Fed is buying stocks. They are buying the stable assets that the mega-wealthy have in their portfolio. Mega-wealthy don't have all their eggs in one basket. The Fed in solidifying a portion of their basket which allows mega-wealthy to retain the added risk in the markets.

Re: Apple Reports Second Quarter Results

#22

Post by jiveturkey »

shakermakr wrote: post #16

Surprised why so many people are surprised. Digital services and platforms are booming in this current climate. We have no choice but to be consuming content. App downloads (30% thank you very much), Apple TV+ ($10 a month thank you very much), Apple Music...the list goes on. That list, apart from TV+ specials, is just revenue on the backs of other work. Others taking advantage of lockdown to product more content. Wh…

> Ad supported services are booming, the Facebooks, Googles, because we’re consuming more ads.

Ad revenue is flat YOY. That's normally death for these companies. In these times, it's positive relative to the market, but that's not what your assertion is.

Re: Apple Reports Second Quarter Results

#23

Post by heimatau »

majormajor wrote: post #17
heimatau wrote: post #14

Earlier quoted context omitted.

This is not true. The mega-wealthy aren't needing to sell their assets because the Fed is doing unlimited QE. Since the mega-wealthy own most stocks, they don't need the liquidity when their "stable" investments are backed by the Federal Reserve's unlimited free money program. This is crony capitalism.

Wouldn't the mega-wealthy be the ones who'd be least likely to need to sell anyway? Versus people with investments that they want to liquidate for a buffer after losing a job, or retirement?

> Wouldn't the mega-wealthy be the ones who'd be least likely to need to sell anyway? Versus people with investments that they want to liquidate for a buffer after losing a job, or retirement?

Yes but...they want profit. They want to go UP...UP...UP...

So, if they felt that their entire portfolio is at risk, they'd cut and run. But since the mega-rich are too big to fail, they are now being (partially) subsidized by the Fed.

Re: Apple Reports Second Quarter Results

#24

Post by filoleg »

toast0 wrote: post #20
shakermakr wrote: post #16

Surprised why so many people are surprised. Digital services and platforms are booming in this current climate. We have no choice but to be consuming content. App downloads (30% thank you very much), Apple TV+ ($10 a month thank you very much), Apple Music...the list goes on. That list, apart from TV+ specials, is just revenue on the backs of other work. Others taking advantage of lockdown to product more content. Wh…

Consuming more ads only helps ad-servers when there are enough ads to serve. A lot of big advertising categories (travel, cars, restaurants) are having a tough time and will likely cut their ad spending.

Apple TV+, Apple Music, and Netflix revenues have nothing to do with ads.

EDIT: parent comment was significantly changed after I replied to it. Initially, it was saying that "Apple TV+, Apple Music, Netflix, and Microsoft" were having a tough time and that their ad-serving customers will likely have to cut their ad spending.

Re: Apple Reports Second Quarter Results

#25

Post by user5994461 »

toasterlovin wrote: post #12
user5994461 wrote: post #10

Bear in mind that the quarter is before the lockdown. >>> Apple today announced financial results for its fiscal 2020 second quarter ended March 28, 2020.

China is one of Apple's largest markets, though, and they were dealing with Coronavirus for the entire quarter.

The lockdown began in Wuhan on 23th January. It was extended to the rest of China somewhen in February. That's not quite the whole quarter.

Re: Apple Reports Second Quarter Results

#26

Post by RandallBrown »

shakermakr wrote: post #16

Surprised why so many people are surprised. Digital services and platforms are booming in this current climate. We have no choice but to be consuming content. App downloads (30% thank you very much), Apple TV+ ($10 a month thank you very much), Apple Music...the list goes on. That list, apart from TV+ specials, is just revenue on the backs of other work. Others taking advantage of lockdown to product more content. Wh…

Apple TV+ is only $5/month, but your point still stands.

Re: Apple Reports Second Quarter Results

#27

Post by rexf »

shakermakr wrote: post #16

Surprised why so many people are surprised. Digital services and platforms are booming in this current climate. We have no choice but to be consuming content. App downloads (30% thank you very much), Apple TV+ ($10 a month thank you very much), Apple Music...the list goes on. That list, apart from TV+ specials, is just revenue on the backs of other work. Others taking advantage of lockdown to product more content. Wh…

Are they getting real income from Apple TV+? It launched Nov 2019 and they offered 1 year free (if you bought a qualifying device).

Anecdotally, I have 1 year of free TV+ and Apple TVs, but I don't use it to watch TV+ (watching Netflix, Youtube, etc. instead).

Re: Apple Reports Second Quarter Results

#28

Post by jedberg »

kgwgk wrote: post #18
jonknee wrote: post #13

Earlier quoted context omitted.

It sure does when you build almost all your products in China.

Did they have a shortage of products to sell? I think the impact of not selling in China may have been more important than the impact of not producing in China last quarter. And in any case the second quarter will probably be worse.

> Did they have a shortage of products to sell?

Very much so. I ordered a new watch and it took three weeks to arrive, when usually they are just a few days.

My friend who works at Apple said in March people weren't getting laptops when they joined the company because they didn't have any to give, as all the new ones were being sent to customers.

Re: Apple Reports Second Quarter Results

#29

Post by Engineer2Throw »

vasco wrote: post #3

When people ask why the stock market isn't in the dumps when it feels like the whole economy is stopped, this is why. Small business isn't on the S&P, and out of the businesses in it, a large percentage of the market value is concentrated on the tech giants who aren't getting nearly as affected by the current crisis as everyone else. If they don't actually benefit from it. Still super impressive results.

Companies that live off marketing don't deal with the same economic physics that other companies do.

Take the backlash Blizzard faced for their pro China stances where Apple banned an app and received no significant backlash. Heck, there were apologists (or marketers) to defend Apple.

There's not much to learn from an economic or operations standpoint from this. At best we should mimick their marketing strategies.

Re: Apple Reports Second Quarter Results

#30

Post by canada_dry »

Hold onto your hats though when companies release results next quarter (in early July).

Consumer spending is way down across the board (everything from appliances to travel). Early indications are the stimulus checks are being saved or used to pay off existing debt - not consuming/purchasing.

The ripple effect of this sudden drop will likely be unprecedented.

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