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Apple Reports Second Quarter Results

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Re: Apple Reports Second Quarter Results

#31

Post by george_perez »

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.

Definitely, products that Apple were always available with deliver within 2 business days. As the crisis grew worse, a lot of products started slipping to 2-3 weeks for delivery. Apple usually doesn't stockpile and sells things as they make it, with a tiny ~margin~ inventory.

Re: Apple Reports Second Quarter Results

#32

Post by rstupek »

rexf wrote: post #27
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).

If you have the free TV+ you should watch. Many of the shows have been really good in my opinion. Haven't watched one of the shows (besides See) that I didn't think were pretty well done.

Re: Apple Reports Second Quarter Results

#33

Post by himinlomax »

canada_dry wrote: post #30

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.

That's because it's not a stimulus cheque. It's an insurance payment. You can't stimulate the economy while you're (for good reasons) shutting it down. I don't know how it is in the US but here in France I can't even go buy an appliance, or to the restaurant, or even get a fucking haircut.

Re: Apple Reports Second Quarter Results

#34

Post by legolas2412 »

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.

When you throw extra demand in a market, prices go up all across the board, not equally though.

As for this particular situation, Fed buys corporate bonds, making companies less risky for stockowners. They also push those yields down, so capital goes to stocks to seek better returns.

Tell me how Federal reserve's actions don't prop up the stock market?

Re: Apple Reports Second Quarter Results

#35

Post by qwerty2020 »

jonknee wrote: post #11
qwerty2020 wrote: post #8

Earlier quoted context omitted.

Effects were also only included in ~2-3 weeks of Q1 earnings.

Keep in mind they have a significant presence in Asia, they felt this for nearly the entire quarter. Plus like Facebook, it's not all straight down. Tim Cook: > “We’ve seen a further change in the last part of March and first part of April were very depressed and then we’ve seen a pick up relative to that period of time in the second half of April" They also announced $50b more in buybacks. Apple is confident in a wa…

Good point re: Asia presence and agree they seem confident + have the balance sheet to back it up.

Overall would just be nice to see weekly splits of revenue from all these companies instead of the vague descriptors we're getting. Would be much easier to project worst case/Q2 that way.

Re: Apple Reports Second Quarter Results

#36

Post by mandeepj »

george_perez wrote: post #31
kgwgk wrote: post #18

Earlier quoted context omitted.

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.

Definitely, products that Apple were always available with deliver within 2 business days. As the crisis grew worse, a lot of products started slipping to 2-3 weeks for delivery. Apple usually doesn't stockpile and sells things as they make it, with a tiny ~margin~ inventory.

> with a tiny margin. Not true at all. Apple sells premium products at a premium price

Re: Apple Reports Second Quarter Results

#37

Post by yfzhou »

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.

Wuhan was basically shut down for the whole quarter, but the rest of China was impacted for only a few weeks though.

The shutdown started on Jan. 23 and things were already reopening by mid-February, and mostly back to normal in March.

https://www.theverge.com/2020/2/13/21136648/apple-beijing-st...

https://www.theverge.com/2020/3/13/21177964/apple-stores-chi...

Re: Apple Reports Second Quarter Results

#38

Post by grogenaut »

jedberg wrote: post #28
kgwgk wrote: post #18

Earlier quoted context omitted.

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.

You still bought this laptop and this watch, they just didn't get it to you. Seems like apple was still selling plenty.

Re: Apple Reports Second Quarter Results

#39

Post by vbezhenar »

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…

But ads are supposed to be paid back by customers buying real stuff. And if they won't buy real stuff because of crisis, it just means that ads budgets will be cut soon.

Re: Apple Reports Second Quarter Results

#40

Post by microtherion »

mandeepj wrote: post #36
george_perez wrote: post #31

Earlier quoted context omitted.

Definitely, products that Apple were always available with deliver within 2 business days. As the crisis grew worse, a lot of products started slipping to 2-3 weeks for delivery. Apple usually doesn't stockpile and sells things as they make it, with a tiny ~margin~ inventory.

> with a tiny margin. Not true at all. Apple sells premium products at a premium price

I suspect GP meant a tiny inventory.
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