Quick Summary for those who missed the call:
Net Sales:
- Products $70,958M +. Services $19,188M = $90,146M ~ 8% Growth YoY
Margins:
- Gross: 42.3%
- Net Margin: 23%
Net income:
- $20,721M ~ 1% Growth YoY
Earnings per share:
- $1.29 ~ 3% Growth YoY
FCF & SO:
- Returned $29B to Shareholders (Buyback + Dividends)
- Reduced Shares Outstanding by ~3% YoY
- Cash, cash equivalents and restricted cash, ending balances: $24,977M ~ (30)% YoY
Net sales by reportable segment: (CY V PY Q): Impressive numbers considering FX
- Americas: $39,808 V $36,820 ~ 8%
- Europe: $22,795 V $20,794 ~ 9%
- China: $15,470 V $14,563 ~ 6%
- Japan: $5,700 V $5,991 ~ (5)%
- Rest: $6,373 V $5,192 ~ Driven by growth in India
Net sales by category:
- iPhone: ~10% Growth YoY
- Mac: ~25% Growth YoY
- iPad: ~(15)% Decline YoY
- Services: 5% Growth YoY – 900M Paid subs
- Wearables: 10% Growth YoY
Q&A:
- Apple is tighting up a little by implying expenses are not going to fluctuate/increase next Q
- Despite the long term goal of becoming cash neutral, and current high interest rates, Apple isn't planning to cut back on buyback, dividends, or possible acquisitions
- Emphasis on the strong dollar impact on the margins ~ most of questions focused on FX
- 2/3 of Apple Watch sales were to first time owners
- There is no plan to expand on advertising in any way that would leverage customers' privacy
Overall,
Strong Q from Apple beyond my personal expectations. I think the most impressive metric in the report is the record high gross margin with international sale growth despite the exchange rates, which almost all tech companies cited as a reason for declining margins this week.
All notes are from the call. If I missed anything, feel free to correct me
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