Apple's fiscal year begins on October 1 of each year, and the company publishes the results of the previous quarter every 3 months, and the evening of the day before yesterday, Apple announced the company's sales and revenues for the first fiscal quarter (October-December) and came in record numbers unprecedented in the company's history to sell the iPhone or IPad. These numbers fooled the non-specialists, saying they were good news. But this is not true, as Apple's financial report, despite unprecedented sales, caused a shock to investors. How did this puzzle happen? Historic sales lead to a shock collapse of investors?
Initially, the returns were as follows:
- 51 million iPhones were sold, compared to 47.7 million in the same quarter last year. (7% increase)
- Selling 26 million iPads, compared to 22 million in the same quarter last year. (14% increase)
- 4.8 million Mac computers were sold, compared to 4 million in the same quarter last year. (19% increase)
- IPod Touch sold 6 million, compared to 12.6 million in the same quarter last year. (51% decrease).
- The company’s revenue is $ 57.5 billion, compared to $ 54.5 billion in the corresponding quarter. (6% increase).
The numbers are great and a good climb, right? So investors must be very happy and rushed to buy Apple shares? Ok let's look at the Apple stock.
A huge selling wave swept Apple's stock yesterday, as investors rushed to sell the stock, which led to a loss of 8%, which is one of the largest declines in the stock that occur in one day since Apple's announcement of the iPhone. The market value of the company decreased by $ 39 billion (this amount exceeds the budget of Arab countries such as the UAE, Kuwait, Qatar, Oman, Jordan, Tunisia, Libya, Sudan, and others). So why did this happen?
The iPhone represents more than 50% of Apple's revenue - specifically 56% this quarter - so any increase or decrease in device sales strongly affects the company as a whole. The analytical centers expected that sales of the iPhone will range from 54 million devices to 57 million. But it was disappointing by a large margin, with only 51 million. Although the iPad (20% of Apple's revenue) achieved the expected sales, the main factor, which is the iPhone, failed. There is also another factor that raised the fear of investors, which is the expectations that Apple mentioned about itself in the second quarter (January-March), where it said that it expects revenues between 42 to 44 billion dollars. At a time when sales of smartphones increased, and Samsung, LG, and even Sony and Nokia started their sales of smartphones to improve. Apple says that its returns will remain the same, not improving, not rising, and meaning not to rise.
Otherwise different policy
For the first time, Apple's revenues from America decreased, and it was always the main market for it, and usually its share was 37-38% of the sales of the first quarter, but this quarter fell to less than 35%, as Apple achieved 20.09 billion compared to 20.34 billion last year, i.e. a drop of a quarter of a billion dollars . So the American and international user no longer has the same passion for the same devices, he wants something new. Change in prices, devices, better offers, new products. Anything different and new, but if Apple continues to offer the same devices at the same prices without any change, then this means the beginning of the end.
Sales in general are good, but it is a dangerous bell that the rise has stopped and even slight signs of decline have started, which will not be a problem now, but if Apple ignores this, it may wake up too late.
Source | Apple
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