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Apple Reports Declining Profits and Slowing Growth Again

nytimes.com

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Re: Apple Reports Declining Profits and Slowing Growth Again

#421

Post by coldtea »

RhodesianHunter wrote: post #286
ajross wrote: post #262

Earlier quoted context omitted.

That's a bit spun too, though. Revenue is up just .93%. Net income is down 12.7%. And they beat the estimates because the estimates were expecting bad news, as the overall trend has been stagnant for about two years. Those just aren't good numbers for a company that, over the past decade, has been literally the most profitable in history. They aren't "bad" numbers, but for Apple they're sort of a disaster. The iPhone…

To (hopefully) noone's surprise. The innovation mostly hit a brick wall and Cook just seems intent on squeezing every last dollar out of incremental improvements to the iPhone until he sails into the sunset

>out of incremental improvements to the iPhone

So, how they always did it -- from the iMac (1997) to the iPod, iPhone, and iPad?

Apple never did "revolutionary" improvements. They put out a great product, and did incremental updates for it -- in older times the updates where even smaller.

Back in the day people went to WWDC and cheered for minor design changes or a new "now in color" screen on iPods...

Re: Apple Reports Declining Profits and Slowing Growth Again

#422

Post by tonyedgecombe »

dawhizkid wrote: post #248
DLA wrote: post #233

NY Times made a mess of this story and slanted it toward their agendas. Horrible reporting. Apple beat most estimates. Revenues grew. All time high revenue from services. Forward guidance was raised. https://www.apple.com/newsroom/2019/07/apple-reports-third-q...

I'm an Apple shareholder...biggest concern with driving "services" is that the 30% commission on in-app purchases is borderline obscene and I don't think longterm sustainable e.g. if the tech regulation hammer is pointed at Apple, regulation around the App Store, including limits on Apple's commission, would make the most sense.

The App Store is awash with stuff, I don't think the 30% charge is hurting them at all. In fact I expect they are wondering why they didn't start higher.

Re: Apple Reports Declining Profits and Slowing Growth Again

#423

Post by tonyedgecombe »

amfsn wrote: post #411
bb123 wrote: post #405

Earlier quoted context omitted.

Does anyone know why the NYT has this agenda?

NYT has an anti-tech agenda in general because tech is killing newspapers. It's also a contrarian position because most people love their tech, and contrarian positions and outrage drive clicks.

It's not just the NYT, we see it in the UK media as well.

Re: Apple Reports Declining Profits and Slowing Growth Again

#425

Post by tonyedgecombe »

october_sky wrote: post #323
david-cako wrote: post #302

Earlier quoted context omitted.

It’s a commoditized market and Apple’s success blueprint is out for everyone to see, yet no one else can adapt mid century design principles and “high fashion” style marketing to technology. This sounds like shilling (and I do own Apple stock) but I’m serious. Compare the Apple remote (with the iOS “emulator”), Apple TV, and Airplay to Chromecast’s UX, for instance. Apple does have special sauce. They make tools that…

Apple TV (and accompanying remote) is by far one of the worst UI/UX experiences I've seen.

I'm not sure why you are getting downvoted, I just got one and it's terrible to use. Mostly I get my phone out and use that instead. The original was better than the current one.

Re: Apple Reports Declining Profits and Slowing Growth Again

#426

Post by tonyedgecombe »

petra wrote: post #335
david-cako wrote: post #302

Earlier quoted context omitted.

It’s a commoditized market and Apple’s success blueprint is out for everyone to see, yet no one else can adapt mid century design principles and “high fashion” style marketing to technology. This sounds like shilling (and I do own Apple stock) but I’m serious. Compare the Apple remote (with the iOS “emulator”), Apple TV, and Airplay to Chromecast’s UX, for instance. Apple does have special sauce. They make tools that…

Apple's main value is it's brand. Being a status symbol. Second is their customer lock-in. Those can carry lots of value. And even strength, maybe. But growth ? And design ? Google can design well enough. Their interfaces are easy and fun to use. Beyond that, regular people don't care.

And design ? Google can design well enough. Their interfaces are easy and fun to use. Beyond that, regular people don't care.

I'm coming to the conclusion that some people are more sensitive to design issues than others. If you are then there isn't much choice, Google certainly isn't an option.

Re: Apple Reports Declining Profits and Slowing Growth Again

#427

Post by tonyedgecombe »

vageli wrote: post #307
capkutay wrote: post #214

Earlier quoted context omitted.

AAPL is still undervalued compared to stocks like AMZN. Apple's P/E of 17 is amazing compared to Amazons 78. I'm not really sure why their stock isn't traded with the same enthusiasm that other tech companies see.

> AAPL is still undervalued compared to stocks like AMZN. Apple's P/E of 17 is amazing compared to Amazons 78. I'm not really sure why their stock isn't traded with the same enthusiasm that other tech companies see. I'm not so sure it's useful to compare stock valuations in this way. An assessment of "undervalued" should be based solely on the facts of that specific company, IMO.

To an extent although the difference is so wide you have to wonder if it is justified and if it isn't what side is wrong.

Re: Apple Reports Declining Profits and Slowing Growth Again

#428

Post by tonyedgecombe »

outside1234 wrote: post #261
jvagner wrote: post #232

Earlier quoted context omitted.

Apple will never get the same P/E love, because they only make like 4 things (Mac, iPhone, iPad, services). Everyone loves to hate on Apple on multiple fronts (elitist, expensive, over the hill), whereas the hate on Amazon is really about one thing.. that ol "makes no profit" canard. CLARIFICATION: I’m talking perception, not my beliefs. Uber’s a scam, as far as I can tell, but they will either pull off a miracle or…

Amazon makes a very small amount of profit for its sales. If they were forced to split out AWS, they would make no profit. Also a fact. That is a pretty scary place to be.

I wonder if the distribution side of the business will ever become profitable. I know the argument is that once they dominate they can start raising prices but these types of business are inherently low margin, competitors will see their profits as an opportunity.

Re: Apple Reports Declining Profits and Slowing Growth Again

#429

Post by tonyedgecombe »

jhall1468 wrote: post #329
capkutay wrote: post #214

Earlier quoted context omitted.

AAPL is still undervalued compared to stocks like AMZN. Apple's P/E of 17 is amazing compared to Amazons 78. I'm not really sure why their stock isn't traded with the same enthusiasm that other tech companies see.

Comparing a high-cost consumer electronics company with market dominance but little growth projection to an online retailer with enormous growth makes absolutely no sense. Comparing their P/E makes even less sense.

Even when they were smaller and there was a long period of growth ahead of them their P/E ratio was low.

Re: Apple Reports Declining Profits and Slowing Growth Again

#430

Post by Mindwipe »

keymone wrote: post #417
dawhizkid wrote: post #248

Earlier quoted context omitted.

I'm an Apple shareholder...biggest concern with driving "services" is that the 30% commission on in-app purchases is borderline obscene and I don't think longterm sustainable e.g. if the tech regulation hammer is pointed at Apple, regulation around the App Store, including limits on Apple's commission, would make the most sense.

it's a tax. as long as apple's walled garden is so much better than anything else - no reason to worry.

If you're an Apple shareholder I would be very worried about anti-trust concerns on this point in Europe especially but also the US.

I would actively price in this going away in Europe, never mind being a risk.

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