Tag: iPhone

Apple by Joe WilcoxOct 25, 20168:30 pm

Apple Services Sales Surge

Two days before Apple’s next media event, where long-overdue new laptops presumably arrive, the Cupertino, Calif.-based tech giant released fiscal fourth quarter and closed full-year 2016. You could feel the anticipation after the Bell closed on Wall Street today—and, honestly, it had been palpable for weeks. Shares closed $118.25, up .51 percent. As I post, they’re down about 3 percent, after hours.

The drama is a TV thriller: Release of iPhone 7 and 7 Plus set against a backdrop of saturated global smartphone sales; launch of Apple Watch Series 2 into an already declining market for smart timepieces; analyst data showing calendar third quarter to again be bad for PC shipments—with even Macs losing momentum. So everyone wants to know: What was the quarter’s financial crop?

Apple by Joe WilcoxApr 27, 20169:37 pm

A Few Bad Apples Shouldn’t Spoil the Whole Bunch, Mr. Cook

Listening to Apple’s fiscal second quarter 2016 earnings conference call yesterday was like attending a funeral—where the eulogy is for someone whom you know has gone to Hell. There’s no way to sugarcoat that the good days are over and an eternity of burning flesh awaits. I kid you not. Haul over to iTunes and download the replay. You’ll feel the grim reaper looking over your shoulder while CEO Tim Cook talks as joyfully about Apple’s performance as a man granted last words before the gallows.

And I wonder why? So what that Apple reported its first revenue decline in 13 years, or that iPhone sales fell for the first time ever, or that Q3 guidance is a few billion short of Wall Street consensus? This friggin’ company still mints money, and that ain’t changing anytime soon. Revenue reached $50.6 billion—more than Alphabet, Facebook, Microsoft, and PayPal combined. Apple’s $10.5 billion net income exceeds that of Alphabet and Microsoft together. Oh, and iPhone generated more revenue ($32.86 billion) than either competitor’s total sales. Apple ended the quarter with a $232 billion cash horde. And we get a wake, not a celebration?

Apple by Joe WilcoxApr 26, 20168:27 pm

The End of the iPhone Empire Begins

The spotlight shines on the world’s most-valuable company this fine Tuesday, as Apple revealed results for fiscal second quarter 2016. Wall Street expected the first revenue growth decline in more than a decade and iPhone’s first-ever sales retraction . Is the sky finally falling? Eh, not yet. But the sun slowly sets over the vast smartphone empire.

Ahead of today’s earnings announcement, Wall Street consensus put revenue down 10.4 percent year over year to $51.97 billion, with earnings per share down 14.2 percent to $2. Apple actual: $50.557 billion sales, $10.5 billion net income, and $1.90 EPS. Three months ago, the company told the Street to expect between $50 billion and $53 billion in sales. You read the numbers correctly: Apple uncharacteristically missed the Street’s targets and came in on the low end of its own guidance.

Apple by Joe WilcoxApr 1, 201612:01 am

Apple Turns 40

Summer 1984, Chapel Hill, N.C., I learned something about prejudice and discrimination in America and saw my first Macintosh. Strangely, looking back at Apple, which celebrates its 40th birthday today, the two things connect.

As I reflected in Jan. 18, 2004, post: “Racism and Naiveté“, I never thought much about skin color growing up in a region of America where most everyone is Caucasian. Northern Maine is a white wonderland for more than abundant snowfall. Strangely, though, my best friends had last names like Chung and Zivic. The local Air Force base, Loring, added color to the populace, and when it came to people I was decidedly colorblind.

Apple by Joe WilcoxFeb 24, 201612:21 am

Bill Gates’ Backdoor Policy

I see something disingenuous about Microsoft cofounder Bill Gates supporting the government’s demands that Apple selectively unlock an iPhone used by one of the San Bernardino, Calif. shooters. The former CEO turned philanthropist spoke to the Financial times in an interview posted today. The implications for Microsoft cannot be overstated, and the company’s current chief executive should state corporate policy.

Gates’ position aligns with the government’s: That this case is specific, and isolated, and that the demand would merely provide “access to information”. Here’s the thing: The interviewer asks Gates if he supports tech companies providing backdoors to their smartphones. The technologist deflects: “Nobody’s talking about a backdoor”. Media consultants teach publicly-facing officials to offer non-answers exactly like this one. The answer defines the narrative, not the interviewer’s question.

Society by Joe WilcoxFeb 17, 20166:30 pm

Tim Cook’s Defining Moment

Some documents are historically significant. They mark moments, comment on them, in manner demanding future citation and even use in courts or classrooms. That’s how I read Apple CEO Tim Cook’s “Open Letter to Our Customers“, about breaking iPhone encryption His exposition spotlights seminal moment in the United States of America: Government’s further expansion of powers encroaching indiviuals’ rights to privacy and one company standing up and saying “No”.

Some people will scoff at my comparison, but it truly is what I see. Cook is like Rosa Parks, refusing to take a seat at the back of the bus—or in this instance behind one court judge and the FBI. Cook and Apple stand up for us all. I applaud law enforcement’s efforts to protect us from terrorism but tyranny shouldn’t be the means; taking away Constitutionally-given freedoms to protect them. Tim Cook is right.

Apple by Joe WilcoxJan 26, 20166:10 pm

iPhone Empire Cracks, Doesn’t Break

Three questions buzzed among investors and around the Interwebs ahead of today’s Apple fiscal first quarter 2016 earnings report: Would iPhone momentum remain; how big could be revenues; and what would be guidance for the quarter in progress? Wall Street consensus was 76.54 million handsets sold and $76.582 billion in sales. Actual: 74.78 million iPhones and $75.872 billion revenue. More unsettling: Apple forecasts its first sales decline in 13 years; guidance is lower than analyst estimates.

After the closing Bell, Apple answered these questions. Revenue rose 2 percent year over, while net income climbed the same to $18.4 billion from $18 billion. Earnings per share of 3,28 nudged ahead of $3.23 consensus estimate. Gross margin reached 40.1 percent, up from 39.9 percent a year earlier.

Apple by Joe WilcoxJan 20, 201610:15 am

Apple Needs to Think Differently

I watch with wonder and concern about Apple, as a longstanding customer (starting in December 1998). As a journalist, I developed a reputation for hating the company (I don’t) so long loved because my stories aren’t kiss-ass fanboyism. What’s that saying about being hardest on the ones you love most? Kind I am not.

Today’s theme isn’t new from me and repeats my analysis that Apple has strayed far from the path that brought truly, disruptive innovative products to market. In 2016, the company banks on past successes that are not long-term sustainable. We will get a glimpse after calendar fourth quarter 2015 earnings are announced on January 26th. You will want to watch iPhone and international sales, particularly emerging markets.

Apple by Joe WilcoxOct 28, 20154:55 pm

Android vs iPhone: When Hype Bites

The haughty headline from yesterday’s Apple fiscal fourth quarter 2015 earnings report isn’t big revenue or profit performance ($51.5 billion and $11.1 billion, respectively), but a figure given by CEO Tim Cook during the analyst call: “We recorded the highest rate on record for Android switches last quarter at 30 percent”.

Blogs, and some news sites, set the statement off like an atomic blast of free marketing for Apple. The fallout spreads across the InterWebs this fine Wednesday, largely undisputed or corroborated. Just because Cook claims something doesn’t make it true. To get some perspective, and to either correct or confirm the public record, today I asked a half-dozen analysts: “Does your analysis of the smartphone market support that assertion?”

Apple by Joe WilcoxSep 20, 201511:26 am

iOS 9 Upgrade Gone Wrong

Friday night I texted my wife: “It’s like dying and going to Hell”. That’s where I was two hours into the ordeal of recovering my nearly 94 year-old father-in-law’s iPhone 5s. There’s a 30-minute comedy show script in the experience somewhere. Not that I laughed living through it.

The drama—eh, comedy of errors—started innocently enough. Anne returned from taking her dad to Fish Friday lunch at McDonald’s. He loves the sale price filet sandwich, with two apple pies and decaf. (I wouldn’t eat the desserts, which here in San DIego are now deep fried rather than baked. Change happened a couple months back.) She reported he couldn’t use the phone: Password problem. Around 5:30 p.m., I set off to fix him up.

Apple by Joe WilcoxSep 14, 20153:00 pm

‘If It’s Not an iPhone…’

The first weekend of iPhone 6s and 6s Plus preorders are behind us, but Apple already looks ahead. This morning, the company presumably sought to quell last week’s Wall Street jitters in statements to CNBC, Financial Times, and MarketWatch, among other news services popular with investors. This is perception-management at Apple’s finest, and it is metaphor for success selling smartphones and why most competitors flounder by comparison.

I didn’t receive the statement and so cannot attest to its veracity. But presuming esteemed financial news services accurately report, misdirection isn’t much better than this. Apple doesn’t give an exact figure, instead stating: “We are on pace to beat last year’s 10 million unit first-weekend record when the new iPhones go on sale Sept. 25”. How circumspect is that? Ten million the first weekend two weeks later?

Apple by Joe WilcoxAug 30, 20158:20 pm

Storm Warning for Apple and iPhone

On September 9, Apple will hold a media event, where, presumably, the next-generation iPhone(s) will be unveiled. The company announced new handsets the same date last year, the 10th in 2013, and the 12th in 2012. But as the big reveal approaches, shadows rise over iPhone’s future: China’s slowing economy; smartphone saturation in core markets; lower selling prices in growth geographies; the end of cellular carrier subsidies in the United States, and, most serious of all, the “good enough problem”.

iPhone rode a perfect storm of success, raising Apple’s fortunes like a tsunami crashing down on competitors. This fact cannot be emphasized enough to illustrate how the bitten fruit logo company’s fortunes could fall as quickly, and as dramatically, as they rose. All the while, Android grows from swell to monsoon.