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Apple reports third quarter results
- throw03172019 3y agoWaiting for someone to summarize the earnings, as always :)
- pharmakom 3y agoLess revenue, more profit. looks like the services strategy is working
- queuebert 3y agoSo, in the limit, revenue will approach zero and profit will approach infinity?
- burnte 3y agoYes. According to my math by the year 2044 they'll have roughly $45/month in expenses (domain names), $400 trillion in revenue, and $580 trillion in profit.
- loeg 3y agoNot sure where you're going with this clearly silly question but if Apple could persuade its costs to be negative, yes, that would be good for shareholders.
- Brendinooo 3y agoNo, but it does make you wonder if some Ballmer-y future CEO decides that the margins of Services are more important than hardware sales, and chases some short-term gain from opening up iOS to commodity hardware makers.
- deleted 3y ago[deleted]
- jbverschoor 3y agoP/E should be higher to reflect that
- lapcat 3y agoI think these charts are a good summary: https://sixcolors.com/post/2023/08/charts-apple-q3-2023-results/ https://sixcolors.com/post/2023/08/charts-apple-q3-2023-resu...
- yen223 3y ago"We are happy to report that we had an all-time revenue record in Services during the June quarter, driven by over 1 billion paid subscriptions..." What counts as a subscription? Because 1 billion feels incredibly high to me, like 1 out of 8 human beings has a paid Apple subscription?
- hahamaster 3y agoThey've subscriptions, not human beings. Some people have five subscriptions, some none.
- deleted 3y ago[deleted]
- tpmoney 3y agoOr multiple people have more than one. Think news and fitness+, or iCloud and Apple TV. If you don’t use more than 3 of their services subscribing to the bundle doesn’t make much sense
- ZekeSulastin 3y agoHaven’t read the release, but I imagine they’re referring to each component (i.e. iCloud, Music) as a separate subscription even if subbed to by the same user bundles notwithstanding.
- soneca 3y agoI have their storage one and Apple TV+, does that count as 2?
- MBCook 3y agoApple has s lot of services. It’s pretty easy to subscribe to a number of them. I wonder if Apple One counts as one service due to being a bundle or four(+) services for the parts.
- eclarkso 3y agoWilling to bet a subscription is a service/person pair, not a person. E.g., a person with iCloud and Apple TV+ is 2 subscriptions, and wouldn't be surprised if the Apple One (or whatever the bulk-subscribe thing is called) counts for all the individual services even if you only use say 3 of the 5 (or whatever the right counts are).
- treesciencebot 3y agoIts incredible that "Services" brings as much revenue as Mac, iPad and wearables/accessories combined. I wonder what are the profit margins on services compared to traditional consumer electronics from Apple's point of view (they obviously need to sell both of them, since without hardware the software is not that useful but still it might incentivize them to subsidize the hardware like console makers in order to earn more from subscriptions).
- HDThoreaun 3y agotaking 30% of other people's revenue is as close to free money as you can get.
- andy_ppp 3y agoIt’s unbelievable really, I thought protection rackets and preventing shops from opening without payment would be illegal.
- lockhouse 3y agoUnpopular opinion, but it’s not like these developers are getting nothing from Apple out of this. Apple runs the modern digital mall. They provide the space, the signage, the discovery, they even handle payment for you. Also, small indie developers are only being charged 15% until they exceed $1 million. So the 30% you always hear about are the big fish that can afford it anyway.
- HDThoreaun 3y agoHey I'm not saying apple isn't providing value here, just that they're making unbelievable margins on the app store. Just guessing here but would not be surprised if just the app store ads cover all the app store expenses and then the 30% is pure profit.
- jbverschoor 3y agoCredit card fees are somewhere between 0.5% and 2.8% So when do we start complaining about Nintendo, Sony, Microsoft, Spotify, etc. etc? They all take 30%+ margins on their platforms.
- lvl102 3y agoApple hit a plateau. I don’t think AR will be a meaningful driver of growth for awhile. Perhaps they make a big move and buy Disney.
- HDThoreaun 3y agoeps up 5%, they're doing fine. I think it's much more likely that they go all in on partnering with a sports league, probably NBA, to be the sole carrier of their content. As far as I can tell the most impressive demo for the vision pro is currently live sporting events. I'm pretty sure apple tv's main reason for existing is to create content for their headsets.
- KptMarchewa 3y ago> eps up 5% Only because they buyback.
- HDThoreaun 3y agoI don't really see how that's an excuse that's supposed to make me think the quarter wasn't successful. Such high margins are almost always due to market failures. Buying back enough shares that eps grows 5% a year is a good outcome for apple.
- TheAlchemist 3y agoPER is >30. For a company that size, with interest rates at ~5%, this is very high by historical standards. But then, we have Tesla and Nvidia which make them look like a bargain.
- maverick2007 3y agoThere's actually talk that they might pick up the media deal for the PAC 12 (if the conference exists in a week) so you might be right on the money there
- comboy 3y agoTheir version of LLM should be fun, they have their silicon, they can make it local and integrate with the ecosystem.
- arberx 3y agoBefore this report, people were paying 32x earnings for Apple. Which has grown roughly -1% in the last year.
- jansan 3y agoWith central bank interest rates at >5% this soulds a bit expensive, no?
- MuffinFlavored 3y agowhat if you look at it from forward earnings?
- nyjah 3y agoI wish Apple would make a handheld gaming device and make it work with steam similarly through the proton layer like Valve. I'm sorta hoping by putting this into writing it might bring it into existence.
- wilsonnb3 3y agoNot sure they'd be able to compete with the performance loss from running Windows binaries via the Game Porting Toolkit (their proton like tool) and the x86 to ARM translation. Apple has been able to make a killer game console or handheld for a while but they just don't seem to care. All they really have to do is change the marketing around the Apple TV, put a controller in the box, and start courting developers to port their switch games...
- TheRealSteel 3y agoI guess they'd encourage developers to officially port their games to native Apple Silicon, but have emulation as a backup.
- giantrobot 3y ago> All they really have to do is change the marketing around the Apple TV, put a controller in the box, and start courting developers to port their switch games... They have done this, albeit half-assed. The AppleTV (and iOS) readily support a bunch of Bluetooth controllers. They tried to get studios to make games for the AppleTV but they mostly just got iPhone/iPad ports. There's a couple big problems with the AppleTV. The first is poor tooling for graphics and audio development. The underlying frameworks are powerful as is the hardware but it's difficult to debug them or access them at a low level. It's hard to just get an accurate accounting of the timing of draw calls and GPU load on iOS and macOS. The tooling for DirectX is way more powerful. The AppleTV hardware is also shit. They've always shipped with old Apple Silicon SoCs. So if you've got a game that screams on the latest iPad or iPhone it runs like shit on the AppleTV or you've got to scale back the visuals. Even when a developer manages to make an awesome game for iOS it ends up sucking on AppleTV. Then there's the tiny amounts of storage. Even the average Nintendo Switch game would find the AppleTV's storage anemic to say nothing of the PS5 or Xbox. Apple has never courted AAA game development. I don't think any of Apple's C-suite appreciates games. They trot out game developers to do slick demos at one of their events (doting on them in the run up) and then go back to largely ignoring them. The various game adjacent technologies/frameworks are almost always bottom-up initiatives from development teams trying to come up with a new shiny thing for the next OS release.
- andy_ppp 3y agoWill do healthcare and a car eventually right?
- deleted 3y ago[deleted]
- thunkshift1 3y agoNot sure about a car, but healthcare definitely
- ChrisArchitect 3y ago"Services"? Sounds about right. Apple is/has been a media company for over a decade. The services that have come along like Cloud etc are just periphery things that support the main thing.
- guidedlight 3y agoiPad isn’t doing very well. I wonder how they can fix that.
- justapassenger 3y agoI love my iPad as media consumption device, but the problem is that I only replaced it once so far. For video, even very old device works well (slow UI of the apps is a secondary concern). I think it’s hard to fix this. It’s just a device that imo most people don’t need to replace that often, compared to phones (where by how you use them, you want more speed) or laptops (that are mostly used for work nowadays, so you also want it to work well).
- gizajob 3y agoI think all the nannas just use smartphones now instead. I love my iPad though, but I also own two macbooks and an iPhone and an android smartphone. I can't see any need to get another iPad for a few years. They're a brilliant device but their use case is a bit up in the air if you already have an iPhone and a MacBook.
- jmull 3y agoI think they need to give current iPad owners a reason to upgrade. I use a pro from 2018 daily, but I don't think there's been a single improvement since then that would be meaningful to me. The most obvious thing I can think of is let them run macOS, which would expand the use cases dramatically.
- Gigachad 3y agoMy mum uses a 2014 ipad air 2 and it still works perfectly fine and even still receives security updates. I don't think Apple needs you to be buying a new ipad every few years. Every time the device needs replacing, its a chance you might switch to Android and stop paying for their subscriptions and 30% cut. The iPad is just one piece of the complete ecosystem. If they last forever without feeling obsolete, it builds a stronger brand.
- hindsightbias 3y ago
- aetherspawn 3y agoPretty good considering the level of R&D that went into pushing their new ARM M2 platform across their entire computing line. We just started buying M2 Macs at work, and oh boy, they are lightning fast, robust refined HW and the battery life is incredible. It’s a check-mate for the personal computing industry, pending they get their enterprise MDM features in shape (ie Intune) and get more apps ported to macOS. For those wondering, just in the last few months you can now bind a M2 Mac to InTune and remotely manage most things. You can’t login to the system with Office365 email yet (coming soon), however you can block personal AppleIDs, push a managed AppleID that uses Office365 SSO without any third-party plugins, and remotely track every device using FindMy. And yes since it supports InTune you can push and deploy endpoint protection and company apps.
- _ea1k 3y agoThe M2 seems incredible. It is the first thing in a long time that has tempted me to try out a Mac. The price is high, but is the performance worth it? 32GB of unified memory would be nice.
- catchnear4321 3y agotake a look at apple’s return policy. you’re invited to take it for a test drive, just don’t treat it like a rental car.
- bombcar 3y agoOr if you're near an Apple Store, go in and ask if you can play around - if they'r not busy they'll often let you download stuff onto the demo machines, etc. They can easily reset them. And then buy a refurbished one on the Apple Card to save a bit of cheddar™. https://www.apple.com/shop/product/FNWE3LL/A/refurbished-16-inch-macbook-pro-apple-m2-max-chip-with-12%E2%80%91core-cpu-and-38%E2%80%91core-gpu-silver?fnode=5f411fe84e6a0be22d7a37c33df1d6bf43ba6c58bf356f22b2cec46df060f65a54d80a50bbe3d7826667dfd9fa327623a6c8940492d389cd107a144d00f8ce2c37af95a649ebba8567348b8f7812a68a https://www.apple.com/shop/product/FNWE3LL/A/refurbished-16-...
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- vendiddy 3y agoIf Apple built a good copilot to help automate tasks on my Mac, I'd pay for a subscription. Kind of like a successor to Mac Automator but smarter and powered by AI. I suppose it'd have to make use of the accessibility features to know what's on the screen and what can be interacted with.
- MuffinFlavored 3y agodefine “tasks”
- vendiddy 3y agoI mean it in the broadest sense. So any rote task I could explain to an assistant. For example: - Backup all these files to Google Drive and share them with Susan - Take a look at all of these links , summarize in a few sentences what each company does, and put it in a doc organized by industry - Use this template and setup a DocuSign for me and Dan Just thinking out loud, but would love an AI automation tool that has access to the screen and keyboard just like I do. Might need some safeguards though!
- gigatexal 3y agoI’m a shareholder (only a handful of them) and I wish they’d not pay the dividend but instead put more into R&D, open up the AppStore a bit, buy more interesting companies, etc. I see the dividend as just a play for wall street. I’d rather see the share price rise and than get dividends that I’m doubly taxed on.
- corry 3y agoI know, I know, I know…. But HOW can Mac revenue be declining? The M2 machines are amazing, best machines I’ve ever used, UNREAL performance and battery life. So funny that we cheer for products we love, like it’s a sports team. Prior generations maybe felt this way about their hand tools.
- nromiun 3y agoIt's not really a mystery. Compare Intel Macbooks with M1.