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Apple reports second quarter results

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Re: Apple reports second quarter results

#81

Post by dangus »

readitalready wrote: post #31
pwatsonwailes wrote: post #8

Short version: Reported quarterly revenue: ~$111 billion, so a 17% year-over-year increase. Diluted earnings per share: ~$2. 22% increase compared to the same quarter last year. Operating cash flow: surpassed $28 billion. Record for a March quarter. iPhone: Record March-quarter revenue of ~$57 billion, heavily supported by demand for the iPhone 17. Services: Hit an all-time high revenue record of ~$31 billion. Capita…

They really need to build their own fabs at this point. AI is going to kill their ASIC and DRAM supply chain if they don't. "Real men have fabs." - Jerry Sanders, first CEO of AMD. Actually, AMD, Nvidia, and Apple need to build their own fabs. Maybe Google, Amazon, and Meta too.

“They need their own fabs” is a very current events-biased read of the situation.

You can easily end up like AMD or Intel spending years with your own fab that’s uncompetitive.

One of the best things that ever happened to AMD was spinning off their fabs.

Intel only recently righted their ship after spending years with fabs that couldn’t keep up with competition, and even Panther Lake still contains some TSMC silicon.

The AI boom is inevitably not going to last forever. Either demand will subside or production will increase. High prices in tech rarely stick around.

Re: Apple reports second quarter results

#82

Post by dangus »

trueno wrote: post #40
readitalready wrote: post #31

Earlier quoted context omitted.

They really need to build their own fabs at this point. AI is going to kill their ASIC and DRAM supply chain if they don't. "Real men have fabs." - Jerry Sanders, first CEO of AMD. Actually, AMD, Nvidia, and Apple need to build their own fabs. Maybe Google, Amazon, and Meta too.

I always wonder if this is a possibility. They've worked so closely with TSMC that they've many times over the decade bankrolled R&D and equipment that TSMC uses. I would be super interested to know if that relationship has left them enough know-how of the fab process to someday control their destiny there, that would actually be pretty insane.

Apple almost certainly has entire production lines at TSMC that they effectively own. I don’t really think bringing chip fabrication in-house has any immediate benefit for them.

We can observe with Apple’s pricing staying stable that they have some of the best supplier arrangements in the industry.

Re: Apple reports second quarter results

#83

Post by dangus »

ryandrake wrote: post #51
brcmthrowaway wrote: post #34

Decent even though Google, OpenAI, Anthropic eating their lunch on AI.

They're not really in that business, though, so who cares? It's like saying Apple is eating the other guys' lunch on Swift adoption. Or Microsoft is eating their lunch on Video Games. There's no rule that says "All companies must focus on AI."

Fun fact: selling iPhones and my TV+ subscription I forgot to cancel and don’t even use is a lot more profitable than selling $2 of compute time for $1 (with 0-6 months of moat).

Re: Apple reports second quarter results

#84

Post by lysace »

twobitshifter wrote: post #53
lysace wrote: post #46

So I really wanted to understand the different kinds of margins. Yes, this was made with the help of an AI, with lots of iterations to make it applicable to Apple and easily understandable. I attempted to verify the numbers manually fwiw. Now please roast me. Net profit margin: 26.6% ($29.58B / $111.18B) — what the company and its shareholders keep after taxes and everything else. (edited) Operating margin: 32.3% ($3…

Correction, shareholders don’t keep the profit, the company keeps most of this on its balance sheet which may cause a corresponding rise in the price of Apple’s stock if people did not already anticipate that level of return. (And markets are rational) The only money that shareholders keep is the dividend per share which was $0.27 out of a profit of $2.01 per share.

Good point. I'll add an edit.

Re: Apple reports second quarter results

#85

Post by readitalready »

dangus wrote: post #81
readitalready wrote: post #31

Earlier quoted context omitted.

They really need to build their own fabs at this point. AI is going to kill their ASIC and DRAM supply chain if they don't. "Real men have fabs." - Jerry Sanders, first CEO of AMD. Actually, AMD, Nvidia, and Apple need to build their own fabs. Maybe Google, Amazon, and Meta too.

“They need their own fabs” is a very current events-biased read of the situation. You can easily end up like AMD or Intel spending years with your own fab that’s uncompetitive. One of the best things that ever happened to AMD was spinning off their fabs. Intel only recently righted their ship after spending years with fabs that couldn’t keep up with competition, and even Panther Lake still contains some TSMC silicon.…

You can easily end up like AMD or Intel spending years with your own fab that’s uncompetitive.

You could.

Or you could have no fab and no supply of chips for your business.

Re: Apple reports second quarter results

#86

Post by readitalready »

dangus wrote: post #82
trueno wrote: post #40

Earlier quoted context omitted.

I always wonder if this is a possibility. They've worked so closely with TSMC that they've many times over the decade bankrolled R&D and equipment that TSMC uses. I would be super interested to know if that relationship has left them enough know-how of the fab process to someday control their destiny there, that would actually be pretty insane.

Apple almost certainly has entire production lines at TSMC that they effectively own. I don’t really think bringing chip fabrication in-house has any immediate benefit for them. We can observe with Apple’s pricing staying stable that they have some of the best supplier arrangements in the industry.

Apple doesn't own TSMC. TSMC is putting Apple in the back burner in favor of Nvidia and other high margin companies.

They are literally being limited by TSMC (as well as the DRAM makers) because they don't have their own fabs.

Re: Apple reports second quarter results

#87

Post by benoau »

nozzlegear wrote: post #76
benoau wrote: post #38

There's only a handful of sources for the services revenue which is growing like crazy, I wonder if they've been able to negotiate a higher ad revenue cut with Google which was revealed to be 36% in Google's antitrust trial, leaving a lot of money on the table. It definitely looks like they've been able to stall the effect of rulings allowing apps to use third party payments. But earlier this week the courts reversed…

It's worth considering (IMO, anyway) that users don't want to use apps that use third party billing, too. That's my own preference, I avoid them and look for something that lets me pay via the App Store instead. In the cases where I can't do that (Disney, Netflix), I just leave a bad review and send feedback on their website asking to pay in the app.

For me there's definitely a trust factor for random app developers and an indifference for non-subscriptions where the one-time fee is irrelevant, but I wouldn't pay an extra $20 - $100 a year in fees to avoid a company like Netflix or Disney managing subscriptions it's just not that hard to do and they're adequate at it.

Re: Apple reports second quarter results

#88

Post by kalleboo »

nozzlegear wrote: post #76
benoau wrote: post #38

There's only a handful of sources for the services revenue which is growing like crazy, I wonder if they've been able to negotiate a higher ad revenue cut with Google which was revealed to be 36% in Google's antitrust trial, leaving a lot of money on the table. It definitely looks like they've been able to stall the effect of rulings allowing apps to use third party payments. But earlier this week the courts reversed…

It's worth considering (IMO, anyway) that users don't want to use apps that use third party billing, too. That's my own preference, I avoid them and look for something that lets me pay via the App Store instead. In the cases where I can't do that (Disney, Netflix), I just leave a bad review and send feedback on their website asking to pay in the app.

Among even non-tech people I know, it's now common knowledge to check on the web if you can get a discount without the Apple tax before doing an in-app purchase. I think most people care more about saving 10-30% on their purchases than the convenience.

Re: Apple reports second quarter results

#90

Post by kalleboo »

brcmthrowaway wrote: post #34

Decent even though Google, OpenAI, Anthropic eating their lunch on AI.

Apple is saving a ridiculous amount of money by just licensing Gemini from Google instead of trying to keep up with a frontier model of their own. In a few years when the S-curve has flattened a bit it will probably be way cheaper to catch up if Google then tries to squeeze them.
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