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Apple Reports Second Quarter Results

94 points| Bahamut | 3 years ago |apple.com

158 comments

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spaceisballer|3 years ago

I’m not surprised that the iPad has a decline. My son has a few year old 9.7” iPad and it works great still. Consume media very easily and even have games. I can notice the difference between it and my 2018 iPad Pro but I could see people are just not going buy new ones every year or two. I’d like the M1 iPad Pro but it’s not worth the jump in price.

hollandheese|3 years ago

Yeah. Until Apple presents a good software reason to upgrade an iPad, most people are just going to stick with the iPad they have until it breaks.

webmobdev|3 years ago

Yeah, an iPad is mostly a "consumption" device and better screens or faster processors or more speakers aren't much of an incentive to upgrade the device when you also consider the higher cost. I guess that is why Apple has been trying to turn it into a laptop like device with the iPad Pro + keyboard. But then, when you consider the limitations of iPadOS, it's becomes very hard to justify the higher cost for the Pro when a laptop is cheaper and more productive for the same use case.

tmp_anon_22|3 years ago

Outside niche games that require performance, there is just no reason to upgrade a dumb media device.

sillysaurusx|3 years ago

Apple Pencil! iPad with procreate is bread and butter.

It was what got me to go for the pro.

shaman1|3 years ago

My ipad mini 2nd edition works well but a number of apps are no longer available due the fact that they require a minimum os version. They will force upgrade by not providing software updates.

malshe|3 years ago

Btw, the repurchase program just got way bigger:

> The board of directors has also authorized an increase of $90 billion to the existing share repurchase program.

candiddevmike|3 years ago

Is the "Services" category under Net Sales where they're sticking the app store/B2B service revenue (ads, payments)?

ksec|3 years ago

Yes.

didip|3 years ago

And yet, the stock goes down. Market expectation is truly unpredictable. FB missed revenue expectation and went up.

Someone|3 years ago

If you assume the market estimates the true value of a company, any reasonable model will have it predict a company’s value with an error that may be either too high or too low.

When a new data point comes in, the market adjusts its estimate. That can be lower than it was, certainly if its previous estimate was too high.

It seems the market expected Apple to do even better.

username_my1|3 years ago

Because of something called P/E ratio

malshe|3 years ago

Net sales: $97 billion

Operating income: $30 billion

Net income: $25 billion

Net sales by category in millions -

iPhone : $50,570

Mac: $10,435

iPad: $7,646

Wearables, Home and Accessories: $8,806

Services: $19,821

simulate-me|3 years ago

Services at 40% of iPhone revenue is pretty amazing.

zaphirplane|3 years ago

What !! Mac 20% of the iPhone cash cow, come on hire 20 more devs for macOS

I know m1 switch took some effort

olliej|3 years ago

"Apple Reports Second Quarter Results Revenue up 9 percent to new March quarter record

Services revenue reaches new all-time high"

For anyone like me who didn't want to actually have to go a read them :D

Revenue: B$97.3, up 9% EPS: $1.52 Operating Cashflow: B$28 Returned B$27 to shareholder (buybacks, dividends I assume?)

Ah:

Divided: $0.23/share Share pepurchase fund increase: B$90

floatinglotus|3 years ago

These earnings are insane! Check out the P/E of the stock tomorrow even after it goes up at the open, the stock is still a steal at this price.

adam_arthur|3 years ago

25-30x PE is not a steal lol. What kind of funny math is that?

dannyw|3 years ago

I like to buy my companies at about 15x P/E.

lvl102|3 years ago

I am simply amazed by how much money this company makes. Nice boost to Mac business with the new Macbook Pros selling like hotcakes and OOS constantly.

zitterbewegung|3 years ago

They are worth it. Nearly every complaint was addressed in the new MacBooks Pros and I feel like its a return to form for the company. The only downsides I can really see is that Wifi on the laptop should have been 6E and the SD Card should have been SD Express but it seems like it was that way due to the length it took being engineered (which isn't an excuse).

gordon_freeman|3 years ago

I agree they are selling MBPs like hotcakes. M1 Max MBPs are no where to find and have been in backlog for months now.

tomatowurst|3 years ago

am I alone in appreciating the touch bar? I just love being able to press debug, step over and into code, switch to a different window and be able to quickly access context aware functionality. Oh and its so damn quiet and fast, I'm loving the M1 processor

downside are the two usb-c and the endless accessories that are quite expensive

kylehotchkiss|3 years ago

Any chance Apple will launch MacBooks with 5G chips? I'm hoping to get to a tether -free easy roaming setup in the next few years

usaphp|3 years ago

I've ordered a new macbook 14" in early March, my delivery date slipped twice already, now it says it's going to be delivered in July. I wonder how much more money would they make if not for supply issues.

curiouscats|3 years ago

They mentioned in the conference call they anticipate $4 to $8 billion in supply chain related lost business in this quarter.

At 33% profit margin and using the mid-point of $6 billion that would cost them $2 billion in missed profit this quarter.

vuln|3 years ago

Well it’s stopped me from upgrading my maxed out 2015 mbp. I’m very impatient and the 2015 is still going strong so part of me doesn’t even want to spend the money on a new device and then wait months for it to arrive.

windowsrookie|3 years ago

Must just be the 14" models? Best buy near me has the 16" models available for pickup and they are on sale for $250 off right now, making them cheaper than the 14".

olliej|3 years ago

yeah I got a studio w/studio display+trade in, the studio itself arrive in a week or so I think? with a week available for the return. Then at the end of the delivery window for the display the silently bumped it to Aril 27. Yesterday they silently bumped it to May 27.

Fair depressing experience.

sillysaurusx|3 years ago

Ditto. At this point it’s easier just to drive to Chicago and pick one up.

threeseed|3 years ago

Same issue with the Studio Display.

In most countries the backlog is 1-2 months away.

aosaigh|3 years ago

Likewise. I cancelled my order as a result.

herpderperator|3 years ago

I mean, you paid them already.

galogon|3 years ago

The Watch, Mac and iPhone are doing great but the iPad lacks ambition and doesn't seem to have a direction. Who is in charge of the iPad division at Apple?

chillacy|3 years ago

> Who is in charge of the iPad division at Apple

Apple isn't organized by product like other large tech companies, instead it's organized by function. E.g. no divisions like iPad, Mac, iPhone. It's divisions like hardware, software, RF, etc. Each division works on all products.

parkingrift|3 years ago

I use the iPad Mini for taking handwritten notes and it works beautifully for that use case.

I would use an iPad Pro as my "laptop" if Apple would let me run macOS. It's a Macbook Air but without a directly attached keyboard saddled with an inappropriate OS for the hardware.

perardi|3 years ago

I remember headlines calling the iPad a big iPod touch when it came out.

…which is maybe kinda true? I have no idea if they want to make it a “Pro” device, despite the Pro moniker, because you still have such weird multitasking UI paradigms and so many limitations in terms of pro features. (Audio routing comes to mind. You can’t have Audio Hijack for iOS.)

And the value proposition of a fully loaded iPad with keyboard case is pretty dubious to me compared to just getting a MacBook Air. I know, I know, less apps, not a touch screen…but I can just do so much more with a Mac, and with the ARM transition, I also get the insane battery life of an iPad.

jhou2|3 years ago

I would argue that the typical reader at hacker news is not the target audience for iPad. Think young children and grandparents. My elderly mother loves her ipads. She has three of them. She can watch youtube on them, check email, chat apps, play music, control her TV. My preschool nieces and nephews love the iPad similarly for youtube and games. iPads are the easiest to use computers for people who are, for one reason or another, functionally computer-illiterate.

ghaff|3 years ago

One has to assume that the ultimate direction is for some sort of convergence of iPad and MacBook. But no one at Apple has figured a good way to do that which isn't a fatal compromise. I use my iPad but it's a pretty optional device for me and I mostly use it when traveling. (I admittedly can't draw to save my life and I really want to get back on a computer pretty quickly when I'm doing things like searching.

idoh|3 years ago

It has the ambition, agree that they haven't figured it out yet. I think that it just might be a hard problem to figure out. I have an iPhone, an iPad, and a MacBook. I really understand when I want to use the phone or the notebook computer. The iPad is sort of in the middle.

I have made attempts at doing all my work stuff on it, but failed every time. Simple things like taking a screenshot over here and pasting it over there just feel harder on the iPad. I really want them to figure it out though!

lvl102|3 years ago

iPad has so much potential with M1 now. They can make it a hybrid with iOS and MacOS for example. In fact, I’d be shocked if that’s not what they end up doing with the M2 line of iPad Pros.

markstos|3 years ago

iPad is the best selling tablet in the world and steadily taking over more laptop functions.

tuxone|3 years ago

Anecdotal but I am still fine with a 2013 iPad Air, just missing some features because of the non upgradable os. Not sure that the fact that sales are decreasing means that the iPad is doing bad