Ondrej Holzman Following yesterday's financial results announcement in which Apple revealed that in the fourth fiscal quarter of 2014 it had revenue of over $42 billion with a net profit of $8,5 billion, Tim Cook took a conference call to answer questions from investors and revealed some interesting information .
Apple is running out of time to produce new iPhones
In the past quarter, Apple sold over 39 million iPhones, 12 percent more than in the third quarter, a year-on-year increase of 16 percent. Tim Cook said that the launch of the iPhone 6 and 6 Plus was the fastest Apple has ever done, and at the same time the most successful. "We sell everything we make," he repeated several times.
Cook did not have a direct answer to the question of whether Apple correctly estimated the interest in individual models. According to him, it is difficult to estimate which iPhone (if it is bigger or smaller) is more interested when Apple immediately sells all the produced pieces. “I've never felt so great after launching a product. That's perhaps the best way to sum it up," he stated.
Strong Mac sales
If any product shined last quarter, it was Macs. 5,5 million PCs sold represent a 25 percent increase over the third quarter, a year-over-year increase of 21 percent. “It was a stunning quarter for Macs, our best ever. The result is our largest market share since 1995,” boasted Cook.
According to the executive director, the back-to-school season played a significant role, when students purchased new computers at favorable events. "I'm really proud of it. To have 21 percent of a shrinking market; There is nothing better."
iPads keep crashing
In contrast to the great success of Macs are iPads. Their sales have fallen for the third quarter in a row, with 12,3 million iPads sold in the most recent quarter (down 7% from the previous quarter, down 13% year-on-year). However, Tim Cook is not worried about the situation. "I know there are negative comments here, but I'm looking at it from a different perspective," Cook began to explain.
Apple managed to sell 237 million iPads in just four years. "That's twice as many iPhones were sold in the first four years," Apple's CEO recalled. In the last 12 months, Apple sold 68 million iPads, for the entire fiscal year 2013, it sold 71 million, which is not such a dramatic drop. “I see it as a slowdown and not a huge problem. But we want to continue to grow. We don't like negative numbers in these matters."
Cook doesn't think the tablet market should be saturated anymore. In the six countries that generate the most revenue for Apple, most people bought an iPad for the first time. The data comes from the end of the June quarter. In these countries, people buying their first iPad represent 50 to 70 percent. You could never get those numbers if the market was oversaturated, according to Cook. “We're seeing people keep iPads longer than iPhones. Since we're only four years into the industry, we really don't know what refresh cycles people will choose. It's hard to estimate," Cook explained.
Apple is not afraid of cannibalization
Other Apple products can also be behind the decline of iPads, when people, for example, go for a Mac or a new iPhone instead of an iPad. "Mutual cannibalization of these products is evidently taking place. I'm sure some will look at the Mac and iPad and choose the Mac. I don't have research to back this up, but I can see it just from the numbers. And by the way, I don't mind at all," said Cook, and he doesn't mind if people choose the new larger iPhone 6 Plus instead of the iPad, which only has a screen that's about two inches smaller.
"I'm sure some people will look at the iPad and the iPhone and choose the iPhone, and I have no problem with that either," assured the CEO of a company for which it is most important that people continue to buy its products, in the end it doesn't matter, for which they reach.
We can expect more big things from Apple
Apple doesn't like to talk about its future products, in fact it doesn't talk about them at all. However, traditionally, someone will still ask what the company is up to during the conference call. Gene Munster of Piper Jaffray wondered what investors who now view Apple as a product company can expect from Apple and what they should focus on. Cook was unusually talkative.
“Look at what we've created and what we've introduced. (…) But more important than all these products is to look at the skills inside this company. I think it is the only company in the world that has the ability to integrate hardware, software and services at the highest level. That alone allows Apple to operate in so many different areas, and the challenge is then deciding what to focus on and what not to focus on. We always have more ideas than resources to work with," Cook replied.
“I'd like to look at what we talked about last week. Things like Continuity and when you use your imagination and think about how far it goes, there's no other company that can do that. Apple is the only one. I think it's incredibly important that this is moving forward and users are living in multi-device environments. I would like to look at the skills, capabilities and passion of this company. The creative engine has never been stronger.”
Apple Pay as a classic demonstration of Apple's art
But Tim Cook wasn't done with the answer for Gene Munster. He continued with Apple Pay. “Apple Pay is classic Apple, taking something incredibly outdated where everyone is focused on everything but the customer and putting the customer at the center of the experience and creating something elegant. As an investor, I would look at these things and feel great,” Cook concluded.
He was also asked during the conference call whether he sees Apple Pay as a separate business or just a feature that will sell more iPhones. According to Cook, it's not just a feature, but like the App Store, the more it grows, the more money Apple will make. When creating Apple Pay, according to Cook, the company focused primarily on the huge security issues it wanted to address, such as not collecting any data from users. “By doing this, we think we're going to sell more devices because we think it's killer feature. "
"We don't let the customer pay for our own benefit, we don't let the seller pay for our own benefit, but there are certain commercial terms agreed between Apple and the banks," Cook revealed, but added that Apple has no plans to disclose them. Apple won't report Apple Pay profits separately, but will include them in future financial results among the millions already generated by iTunes.
I'm sorry to have to write this, but Cook probably likes mushrooms or something. He's been promising an absolute revolution for two years and still farts. The software quality is appalling. Well, Yosemite's UI isn't even worth talking about. This can't last long.
well, the quality of the software is bad, but it's still programmable and can be adjusted. it's worse with hardware. see mac mini. tragedy. apple watch? tragedy. iphone 6 and 6+? tragedy. this is a far bigger problem than an untuned system.
if I want to push people to buy new products every couple of years, including the ones I have, they must offer something to advise. but mac mini? that's a mockery to everyone who was waiting for her. and why buy a new iMac with retina for almost 100k when I have an older model with the same performance but without retina but still with a huge resolution?
like this, everyone prefers to stay with 2,3,4, even more years old models because they won't be forced to buy a machine with the same performance for 80 just because it has an ultra-fine resolution.
"Almost 100k" - But 70k and 100k is quite a difference.
"Only without Retina" - You answered yourself, Retina (until it becomes completely common in a few years) is not for you. Believe me, photographers, editors, graphic designers and others have been waiting for this for a long time. Given the current prices of 4K displays and the price of the iMac 5K, the iMac 5K for 70 is a really good buy.
I am a designer and I model in 3D. then post adjustments in PS etc. are common for me. I do everything on a macbook with retina and the resolution is enough for me. I don't need 2,5x the resolution I have now. the resolution from here would be fine for me even on a 27″ iMac. but to buy for 70t a thing with a 5400-speed disk and 8GB of ram seems like a complete waste to me. so with extra charges for RAM to at least 16GB and flash storage we're at 90. and when we're at it a stronger processor comes in handy and better graphics too. so a person will pay a hundred for a machine that can feed the display smoothly.
You're bullshitting - 4k resolution is pretty normal these days!! For 100k I will buy a solid PC and a 32″ 4k display and the result will be comparable to APPLE. 5k is the flight of someone from marketing - who follows the slogan more stripes more Adidas - but has no idea how to put on those tracksuits... Apple is falling into the abyss - these steps will regret them one day - but unfortunately Jobs will not be able to cut them off :-(!
They suddenly extended the delivery of the iMac from 3-5 working days to 5-7, but it will not arrive until 6.11. So it doesn't fit somehow. 5K is the only display where I can edit and see both the 1:1 window in 4K (GoPro 4BE camera for 13 thousand) and TimeLine. Dell has a single 5K display for the price of an entire iMac, and it has to be connected to a computer with two cables in order to feed it. (Thunderbolt 2 only supports 4K) Forget about building a cheap PC assembly in this category. This is absolutely the bomb (value for money) for me and I can't wait. For me, the only mistake is that they could have left FireWire for connecting older editing discs. (I have loads of them and they can be chained unlike USB3)
I agree with the first one, people were waiting for new versions of Macs and they got even weaker iron than the ones they could have bought a year ago? That seems to me like making the customer a complete illiterate moron..
When it comes to iPhones, I don't understand the pursuit of the thinnest phone possible, at the expense of the battery and now the design. Shouldn't I buy a new phone that will last me a day and a half? And a semi-plastic one that I'll use for a camera lens within a week..
The iMac Retina as well as the Mac Pro are and will be pieces for professionals, that's a completely different matter..if someone wants it for playing games then yes, it's damn overpriced and it's not worth the money for them.
I have the same feeling and the resulting concerns.
In my opinion, either they can't keep up (previously "one thing, but good for it" - now 20 pieces of hardware, each different and they still sell years old pieces - mainly because they laughed at Android for fragmentation) or they are being pressured by the company's management at they chase money and are not perfectionists.
I simply can't believe that Jony Ive is holding an iPhone 6 with the back and the protruding camera and he is proud of himself and has no regrets that he put this semi-finished product on sale..
Wishful thinking..
Well, it wouldn't be so bad if they had to start the engine for a while ;-)
I'm starting to think there is a direct correlation between the amount of "We make a big things" crap and the number of problems that accompany their "Big things" lately.
That's right :-)
Well, some of them got excited watching me. Like I'm not saying you're partially right. However, I was able to touch the IP6 and despite the wart and the plastic on the back, it's a gem, I was dreaming, it's just a perfect device. I reached out to the competition and, willy-nilly, they are really far away. Whether Jonny is happy or not, I'm really happy here!!!! I'll go get him on Saturday. I originally wanted the IP6 plus, but unfortunately it is too big, in Apple's presentation I could handle 5,2 inches, but 5,5 with IP design is too much. 5,5 inches from LG I would take and use without any problem thanks to the radically weak edges on all sides and the round back, it holds and controls perfectly, but Android, despite all the problems of IOS, is really terrible.
As with the last Yosemite update, I observed quite a few problems, but even so, I have already familiarized myself with the system and I think it's fine. It's still a league away from Windows, but when the time comes I have to sit down and research the news because some of them don't work for me. Yosemite vs. iOS
Anyway, it is simply true that currently Apple is the most profitable technology company, able to sell a thing with a production price of 250 dollars for 999, which is a problem for the customer, but from the point of view of business and investor, I take it very positively.
I don't know, well, the one who wants to chatter will always be there, Jobs is gone, he won't come back, I don't know if you understand. Put up with stim or go for another brand is the only advice. For example, buy a Mi 4 from xiaomi, which I take as an IP alternative, I haven't seen it live, but Android looks like iOS there, so at least it's somewhat usable :-D
To your penultimate paragraph ($250 for 999) - Yes, you're right, Apple can sell things like this, which is great for investors. But the question is whether it is sustainable in the long term. If there will be more of those "shitholes" like iOS 8.0.1, bendable devices, etc., and more people will be affected, people will definitely change their minds about buying such things over time. Apple's ecosystem is strong and it's definitely a clear advantage that one gets attached to. On the other hand, for that money, one expects that debugging, both software and hardware (of course, except for those who buy Apple because of Apple) and if they don't get it several times, they will reconsider the purchase next time and maybe leave Apple in time.
Lately, I've been really reading Cook's very powerful speeches, the only thing he can say at the keynote is how everything is selling great, how they are the best, etc. Yes, he's right so far, but so that things don't go wrong over time.
Otherwise, I am writing this as a Macbook, iPhone and iPad user...
Well, despite all the troubles, I still hope, or I try to. Even under Jobs, there were mistakes, but no one apologized for them and no one ever admitted the problems. Now, in my opinion, they are only more visible, but they were always only Jobs was a fanatic and that's how Cook led it, but in my opinion, it deepens it well, I don't think it's so bad then. We'll see what happens next, I enjoy watching it myself, at least it's not boring.
Sure, me too :). I just hope that at least the current quality will be maintained, because I've always enjoyed using Apple products and I still enjoy them, so I hope it will continue to be that way...
There were problems even under Jobs, but you also need to realize what kind of hype there was around Apple under Jobs and what it is like today. While at the time of iP3 and 4 it was mainly in the USA and other relatively richer countries, today it is a mass market that is commonly seen in CR, SK, China (!) etc. It is simply somewhere else and the hype around it is growing. If the iPhone 4 was bending, there wouldn't be such a case - see antenagate. It was a pruser, but it wasn't as ridiculously hyped as it is today. And that's it. Most people know about it - so there are more idiots and more smart ones. But there is simply more, and the result is 30 million views on the video of how to screw up the bends of the iPhone. It became a pruser and apple reacted by giving new mobiles to what happened. Not every company would do this - that Samsung Note4 with a gap between the display and the frame. This is not talked about because it doesn't have the right hype - sorry to keep repeating it, but that's how I see it.
IMHO, what changed was that under Jobs, the user came first. This created a wealthy shareholder. For Cook, it is the case that the shareholder comes first and the resulting "small house" in the form of a preference for Asian markets. I don't think this is a profitable strategy in the long run. Cook is not an innovator, he is a maintainer, accounting results come first for him.
Well, there is certainly some truth to that, do you have any justification why Jobs did not choose otherwise? Why didn't he put someone else in there? He certainly had enough people at his disposal. don't you think he meant it that way? You can't be a visionary permanently. Of course it's not ideal, it could be better, but at the same time it could be much worse.
Apple will creatively figure out how to make a worse and worse product with a slightly lower price. For example, an 8GB plastic iPhone 5C, or a 1.4GHz iMac with a 5400-rpm hard drive, most recently the same mac mini. Removal of mac mini server and mac mini kernel.
A couple of years old iPads and Apple TV. The iPod touch in particular is lousy these days.
BTW did you notice that the price of a normal dual core mac mini went from 639 euros to 729 euros?
A few years ago, the iMac had a 7200 rpm disk as standard. Apple creatively replaced it with a slower one :-)
I like how everyone's mouth is full of bullshit, how everything is wrong. However, if you look at it from a perspective, Apple is just adapting to the developing market - and I think that's OK.
Next, I would like to comment on T. Cook's position. If only you had looked into it a little more closely than I did. Before he died, Jobs said something to the effect of: "And Cook does it his way, that there will always be someone who will have a mouth full of bullshit, that it could be done differently." That Jobs wouldn't agree with this and that” – This is the thing that Jobs hit on. He just can't do it like Jobs. He's just not Jobs. He does it his way, and I don't think that's wrong.
Jobs died in 2011 and what happened since then? I think a lot. A lot of new things were created. See from the most prominent ones like Apple Watch, Touch ID, new iPad series, new iPhones (so I don't like you, I have a 5s :D ) new MacBooks and iMacs and other others….
I don't think apple is doing anything wrong. On the contrary. But only time will tell who is right :)
Apple's creativity has been on the rise lately.
A phone with a protruding lens, unfinished graphics on the larger 6 plus display, the iPad lost the last remnants of mechanical buttons. Gutted Mac mini, watch for nothing but for payment, degraded graphics of the new iTunes, audiobook text field is lost and more and more crap………..!!!
I don't agree - I don't deal with the protruding lens. I'd rather have a better photo with a slightly protruding camera than a worse one that is flush with the phone. I don't have an iPad, so I don't care about the mute button. the design of the new itunes is much, much better. not that I don't like the old itunes, but these are much more logical and beautiful. I don't listen to audiobooks - I don't see them. iphone 6plus recently released - what are you waiting for? with the iphone 5 it took a few months before everything was updated to 4″. the stylees are a dog shit and yes, waterproofing would be nice. what bothers me the most are the shouts of people into the void. material dissatisfaction. yes, there is a need for dissatisfaction to move somewhere, but it seems to me that it is in the wrong places
and keep the statement that the watch is only good for payment
I have a 4S 64GB OIS 6.1.3, everything works perfectly: I mail, surf the Internet, navigate, play games, watch streams, listen to music... the response is instant, completely stable.... the battery lasts almost two days... icloud doesn't need enough capacity... in my opinion, at this time, Apple was at the peak of tuned software and hardware... Jobs's absolute precision was simply at its peak... after everything around me, I see 4S hygge with everything it gave... and it's still a beauty which deviates from the Asian taste... you will probably stone me for being conservative, but what meaningful superstructure did Apple bring during Cook's time to make me put the 4S in the bin...
No stonewalling! I have the same thing but with iOS 5.1.1! The speed is perfect, the same as out of the box 3 years ago, only the battery is gone after half a day.