The day before yesterday, Apple officially announced the results of its first fiscal quarter for the year 2018, which are October, November, December 2017, and in this report, Apple exceeded its expectations, the same that it had announced before the beginning of the quarter, and also issued expectations for the second quarter better than the same for 2017, and despite this, Apple's stock quickly collapsed In the financial markets, the company lost more than $ 40 billion of its market value in just 6 hours. So what happened?

Results
Of course, you came across the results while browsing the news for the past two days, but we are quickly re-telling them:

◉ Apple's total sales increased 13% to $ 88.29 billion last quarter, compared to 78.35 billion in the same quarter of 2017, while its forecast was $ 84-87 billion.
◉ Apple's sales increased in all regions of the world without exception, either compared to the same quarter or the previous quarter directly.
◉ iPhone sales decreased 1% to 77.3 million compared to 78.3 million, but revenues increased 13% to $ 61.5 billion
Apple became the largest smartphone manufacturer during the last quarter of 2017 (not this year), 3 million more phones ahead of Samsung, which ranked second.

◉ iPad sales increased by 1% and revenue 6%, to reach 13.1 million devices, valued at $ 5.8 billion.
◉ Mac hardware sales decreased by 5% as a number and 5% as material revenues, with a total of 5.1 million devices, valued at 6.89 billion dollars.
◉ Apple’s collection of services increased by 18% to $ 8.4 billion.
◉ Apple's revenue from sub-devices increased to 5.48 billion, or a 36% increase.
Apple expects to achieve revenue of $ 60-62 billion next quarter, compared to $ 52.8 billion in the same quarter last year.
◉ Apple expected the tax item to become 15% to 25%.
The results and numbers are great, right? So why did Apple stock crash?

IPhone password
As usual, the key for Apple is the iPhone, as it represents approximately 70% of Apple's revenue, meaning that more than double everything else, whether the other is the iPad, the iPod Mac, the Bates family, the software store ... etc. etc. All this is 30% and the iPhone 70% The viewer of the numbers says that the decline is slight, as instead of 78.3 million, it has become 77.3%, i.e. 1% decrease, while the smart phone market as a whole has decreased between 6-8%. And you might also say that Apple’s revenues have increased by 13%. So where is the problem?

Let's analyze the situation and look at it in more detail. As for the decrease in the number, yes, 1 million is a slight number, but given that the same quarter Apple used to sell the iPhone 7 and 7 Plus. And this quarter was 8, 8 Plus and X which device increased and sales decreased? This is a clear reversal. If you look at a 13% rise in revenues, this is due to the fact that Apple increased the average price of the iPhone by $ 100 to $ 795 instead of $ 695, meaning that there are approximately $ 8 billion that came thanks to the price increase, not the improvement in sales.
Apple's Wealth and Future
Economic analysts from global banks such as Bank of America; Deutsche; City; Barclays, as well as financial institutions, agree that there is concern about Apple's future for many reasons, the most important of which are:
1
Apple fortune: Apple said at the conference that its debt has reached $ 122 billion and cash is $ 285 billion. She explained that the difference of $ 163 billion difference will be used in the purchase of shares of the company and cash dividends as well as acquisitions. The company's possession of liquidity equal to 20% of its value is a matter of concern, especially with its announcement that it will buy its shares because this means its ability to intervene strongly in the share price and this worries investors.
2
the future: Investors worry about the company's future; Even with its decision to increase the phones to 3, there was no increase in sales. And the company failed to develop any other products or sectors that reduce the weight of the iPhone and its impact, and it is dangerous for a huge entity like Apple to be dependent on only one product.
3
Negative news: A lot of negative news spread about Apple and the future of the iPhone, but the company, by announcing a decline in phone sales, gave this pessimistic news additional weight, and the company did not seek any assurances about the future of its device.
Conclusion:
Apple is a company that depends only on the iPhone and failed to significantly increase its revenue from any sector, which caused a crisis because at the same time it increased the iPhone family to 3 devices, but did not increase sales. So there is a fundamental problem with the company and concern for investors who want a long and secure future, not short-term successes.



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