Apple Double-Digit Revenue Growth Continues

Even global macro jockeys must monitor the world’s largest company.

Amazing that an $850 billion market cap company can still grow y/y revenues at 13 percent. Just for some scale perspective, Apple’s quarterly revenues exceed the GDP of almost 70 percent of world’s country GDPs. Hackneyed analysis, but stunning, nonetheless.

Earnings

Apple comes in a little light on iPhone sales, unit sales down 1 percent (ditto for Macs), but revenues made up by higher prices.  It looks like the price point on the new iPhone is becoming prohibitively expensive. Can’t raise prices to the sky.

The iPhone X starts at $999 for a 64GB model, but survey data indicated that most early adopters willing to pay big bucks for the latest iPhone were springing for the $1,149 model that has four times the storage. As such, analysts predict that the average price of phones sold during the quarter rose to a record of $752, up more than $50 from a year ago, according to FactSet.Market Watch

Services continue robust growth, up 18 percent, and comes in at 10 percent of total revenues versus 16 percent last quarter. The iPhone was 70 percent of revenues for the quarter. We continue to monitor service revenues to see if the company can transform itself from hardware to a software and services company.

China came in about 20 percent of revenues versus 40 percent for the Americas.

Net cash now around $180 billion ($284 b less $103 b debt).

Stock Price

The stock is whipping around in AH, falling a couple of bucks after release and now up $6 as of 6:00 pm eastern. The stock is down 3 percent from its January 18th all-time high versus about a 1 percent rise in the S&P500.

No clue where the stock price is headed.

Apple_Feb1

 

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