Apple Reports Record First Quarter Results • Hacker News Board

Re: Apple Reports Record First Quarter Results

#41

Post by Cookingboy » Tue, Jan 27, 2015, 10:29 PM UTC

jacquesm wrote: post #18

Samsung will do their earnings announcements on the 29th, it will be interesting to compare those two side-by-side. Apple is doing extremely well on the margins but they have actually lost ground when going by the numbers (~30% market share now vs ~70% android).

That number is old, in the most recent quarter Apple just rose to be the number 1 OEM in China, and took 55% marketshare in Japan, even took 30% marketshare in S.Korea, Samsung's home turf.

Sure, globally Android will remain larger, but the trend is stabilizing if not reversing a little for now.

Re: Apple Reports Record First Quarter Results

#42

Post by mikeash » Tue, Jan 27, 2015, 10:29 PM UTC

liquidise wrote: post #15

aaronbrethorst wrote: post #3

Earlier quoted context omitted.

Yep: http://en.wikipedia.org/wiki/List_of_largest_corporate_profi...

Always amazed by the lists one can find on Wikipedia. The largest losses also tell an interesting tale.

It's interesting how the largest losses are far larger than the largest gains. Shows how it's easier to destroy than create.

Re: Apple Reports Record First Quarter Results

#43

Post by SG- » Tue, Jan 27, 2015, 10:29 PM UTC

jusben1369 wrote: post #7

I think these results are amazing. Kudos to Apple. And now I'm going to be "that guy" on HN. iPad is off 18%. So now Apple really is living and dying by a single product? I mean it's amazing how well they are doing with "just" one product but technology tastes seem so fickle that it's an interesting predicament to be in.

I think the bigger iPhones just ate into iPad sales. Have you seen how big the 6 Plus is in person?

Re: Apple Reports Record First Quarter Results

#44

Post by hyp0 » Tue, Jan 27, 2015, 10:30 PM UTC

Apple has the technology headroom to keep making more powerful iphones for several more generations... but will it reach a point where people don't need a more powerful phone? (that they don't get any benefit from it, so that power is not utilized). I would have thought they were more powerful than a phone needs to be already, but obviously not! One view is that they are still replacing desktops, suggesting users will value increases in power until they are as powerful as a desktop. Of course, gaming use is unlimited, but I'm not sure that's a key usage.

I would expect something like the Apple watch is essential for Apple, because that small form factor has lots of runway, as each increase in power would be a benefit to users.

Re: Apple Reports Record First Quarter Results

#45

Post by okibeogezi » Tue, Jan 27, 2015, 10:30 PM UTC

pdknsk wrote: post #19

It shows that margin on Apple products is too high. This leaves plenty of room for some company to come into the market and steal their customers. That it hasn't happened shows the strength of Apple. They make products people will pay premium for.

Apple makes luxury products. People like luxury products. Luxury products have strong brand appeal so they can comfortably ask people to pay more for products. Any other company that sells like phones at Apple's price range will FAIL. You either make something extremely better for the same price or just as good at a lower price. Neither is a guaranty for success though.

Re: Apple Reports Record First Quarter Results

#46

Post by xj9 » Tue, Jan 27, 2015, 10:31 PM UTC

freshyill wrote: post #37

Remember, Apple needs to target the low end to succeed in China. They need to put out the crappiest, cheapest phone they possibly can otherwise Samsung and Xiaomi will eat their lunch. Edit: Obvious sarcasm is apparently not obvious enough.

Do you see these numbers? Why would Apple care about low-end, low margin sales in China?

Re: Apple Reports Record First Quarter Results

#47

Post by mythz » Tue, Jan 27, 2015, 10:31 PM UTC

Wow $74.6 Billion Revenue and $18 Billion profit on 74.5M iPhones in a quarter is nuts.

Apple also mentioned in the Conference call that the volatile exchange rate also hurt sales numbers by 4% (vs a constant exchange rate) which they're more susceptible to now that over 65% of their sales are outside of the US.

Re: Apple Reports Record First Quarter Results

#48

Post by jacquesm » Tue, Jan 27, 2015, 10:32 PM UTC

bdcravens wrote: post #38

jacquesm wrote: post #18

Samsung will do their earnings announcements on the 29th, it will be interesting to compare those two side-by-side. Apple is doing extremely well on the margins but they have actually lost ground when going by the numbers (~30% market share now vs ~70% android).

I think much of that 70% number is downmarket. Apple's competition is primarily Samsung, as well as the premium devices offered by Motorola, HTC, etc. (Though to be fair, I wonder how much of Apple's 30% is from older phones costing $99 or less with contract)

> I think much of that 70% number is downmarket.

Yes, it is. Hence the huge margins gap.

> Apple's competition is primarily Samsung, as well as the premium devices offered by Motorola, HTC, etc. (Though to be fair, I wonder how much of Apple's 30% is from older phones costing $99 or less with contract)

No idea, that would be interesting to figure out.

Re: Apple Reports Record First Quarter Results

#49

Post by jacquesm » Tue, Jan 27, 2015, 10:32 PM UTC

Dylan16807 wrote: post #33

korzun wrote: post #21

Earlier quoted context omitted.

> Meaning that $74.6 billion[2] is enough to buy Apple 12 nuclear carriers You can't buy a single operational carrier for that price.

Do you mean that they're not for sale, which is obvious, or are you saying the true price is different? How different?

He means that money alone won't get you an operational carrier.

Re: Apple Reports Record First Quarter Results

#50

Post by redler » Tue, Jan 27, 2015, 10:33 PM UTC

pdknsk wrote: post #19

It shows that margin on Apple products is too high. This leaves plenty of room for some company to come into the market and steal their customers. That it hasn't happened shows the strength of Apple. They make products people will pay premium for.

"High" is a relative measure, and "too high" would indicate a problem. Margin is certainly high compared to the various cohorts against which Apple is measured -- that's obviously not a problem. It would only become a problem if competitors can somehow negatively affect Apple by delivering market-equivalent or better products and services while foregoing margin by living in that profit "shadow". Plenty of companies are doing the latter, but not while doing the former.

Edit: As usms implies elsewhere in this thread, competitors can't simply decide to do both simultaneously, since Apple has an optimally efficient supply chain and massive economies of scale.