Apple Earnings Preview: All Eyes on Next Quarter's Guidance Ahead of New iPhones, Apple Card, and Apple TV+

Still hoping that consumers will have started voting with their wallets. Finally.

They have. Best June quarter in company history.

I expect them to miss most metrics, possibly each one. Apple is in an innovation downspiral, eventually it will start being reflected in the earnings. Maybe not yet - probably, but maybe not - but definitely eventually.

Definitely, eventually, we're all going to die.

I expect them to miss most metrics, possibly each one. Apple is in an innovation downspiral, eventually it will start being reflected in the earnings. Maybe not yet - probably, but maybe not - but definitely eventually.

Be specific.

You think they will earn under $52.5B in sales and less than $2.10/share?

I expect record services revenue, solid top line revenue within their guidance, and more than $2.10/share.

Now imagine if they listened to MacRumors members :p

You consider a 13% loss on profits their “best” quarter in history? Interesting perspective, but OK.

You think cherry-picking a single number out of several positive ones is enough to declare this a bad quarter? Funny how you went from "most metrics" to honing in on a single one to try and back up your claim, which has been proven false.

Funny and accurate. All I meant was that the initial snowballing effect of hemorrhaging users and brand loyalty takes several update cycles before it begins hitting the bottom line and showing up in revenue. Especially with Tim Cook’s tactics of raising price and forcing upgrades, methods he uses to slow the awareness of the issue.

Not sure if it will be this year or next, but the problems Apple is facing are very real and urgent, so expect to see them shortly. It will start with missing Wall Street estimates, then slowly but surely the sales will begin dropping off on a chart graph like never before seen. It will be interesting to see if we are still at the “early trickle” stages or the full-on freefall stages. But I do strongly believe Apple is in for a world of hurt, and sooner rather than later. Just one of those “can’t prove it but it’s true” things. Or CPIBIT as I like to call it.

If I had a dollar for every time I heard that....

This quarter underlines that: despite iPhone sales continuing to shrink, the firm's revenues are up, thanks to booming success with its Wearables, Home and Accessories category (so: Apple Watch, mostly, and AirPods) and continued growth of it Services (App Store, Apple Pay, Apple TV, Apple Music etc).

How do people not understand that all of the bolder, RELY ON IPHONE?

Third straight quarter of declining iPhone sales. 12% year over year decline. Revenue is up, while *PROFITS* fell 13%, because of iPhone. Almost all of their Services revenue also depends on iPhone.

This is not good news. One really has to wonder just what the shareholders on Wall Street are thinking.

Those things depend, to a great degree, on iPhones, yes.

But they don't depend on new (and increasing) iPhone sales. They depend on iPhone ownership and use. iPhone install base continues to grow, and that's what matters more when it comes to those products and services. (Though they could grow for quite a while even if iPhone install base stopped growing.)

Apple doesn't have a problem with losing iPhone customers or users. The issue is elongating purchase cycles. That issue has been anticipated - even in effect - for quite some time. And Apple has been taking steps - fairly effective ones - to deal with that anticipated reality. The reality is that iPhones remain effective for most people's use needs for a long time. There's less need to upgrade. And Apple has embraced that reality. It, e.g., offers updates for iPhones which are many years old. Rather than that reality being a negative, it's a positive - and Apple has worked on turning it into a positive. iPhones represent even better values because, more often, newly purchased iPhones are going to be used for 3 or 4 or 5 years.

iPhone unit sales peaked in CY 2015 and they've dropped every year since then. That isn't something new and it isn't, for the most part, because of things which Apple has done wrong. It's the reality of a product market that is maturing (or has matured) in many important geographic markets. And it's because iPhones have gotten better and remain useful (relative to what's new) longer.

As for why net income fell: Gross margin was nearly flat - $20.2 billion as compared to $20.4 billion in the year-ago quarter. It may even have been up if we back out the one-time item (from the year-ago quarter) relating to the resolution of lawsuits. So profit didn't fall because Apple made less money selling products and services. It fell mostly for other reasons. For instance, R&D spending increased by 15%, non-operating income fell by 45%, and Apple's effective income tax rate increased from 13.3% to 15.7%.

iPhone install base grew YOY in China.

75% of Apple Watch sales this quarter were to first time buyers.

Apple’s ('https://crunchbase.com/organization/apple')June quarter revenue showcases just how much revenue growth has been slowing for the company. The Q3 2019 revenue of $53.8 billion just peeks above the Q3 2018 revenue of $53.3 billion.

iPhone revenue had the biggest year-over-year dip going from $29.5 billion in last year’s Q3 to just $26 billion this most recent quarter.

Stock is up 4% after hours.

Apple’s quarterly profit falls as iPhone sales sputter


SAN FRANCISCO — Apple’s iPhone sales are still sputtering while the company tries to offset the decline by milking more money from services such as music subscriptions.

The latest downturn announced Tuesday as part of Apple’s latest quarterly results underscores a big challenge for a company that has been riding the smartphone revolution since 2007.

The iPhone’s waning popularity is the main reason Apple’s profit for the April-June period fell 13% to $10 billion.

You think making everything big & bold enhances your argument?

Apple stock price is already up 2.9% in after hours trading. Seems people disagree with you and your "doom & gloom" conclusions.