Last week we talked about the fourth quarter results and the FY 2018 summary from Apple -this link- At the end of it, we mentioned that Apple made a strange and surprising decision, which is to hide future sales of digital devices. This decision was not simple, as it caused Apple's share price to drop by nearly 10%, "close to 100 billion dollars," and expelled Apple out of the club of trillion companies, of which it was the only member. So why did Apple make this strange decision and how would it affect the future of the company? Is the secret predicting a sales collapse?
Important clarification
This article is based on an expectation and analysis of why Apple made this decision; That is, we are trying to imagine how Apple and its leaders thought when taking it; It does not mean at all that we support this matter, but rather we are angry with it because it deprives us of the pleasure of analyzing and comparing numbers as we always do. That is, in this article, we explain a decision and do not justify a decision, as some think when we do this clarification matter.
Money is important, not quality
Apple said it openly in the comment, which is that the primary goal of any investor anywhere is to make more money. Yes, this is a fact, as companies were established to make money not to do humanitarian work; This is what Apple meant, and it makes sense from a purely physical point of view. For example, which one is better if the company tells you that it sold 200 million iPhones and won 10 billion or sold 150 million iPhones and won 20 billion. The important thing is the profits because you are an investor and not an online hobbyist who wants an impressive sales number to annoy his friends, who love other companies.
So Apple decided to hide the number of devices sold and everything related to the "number", but it will continue to tell us, in money terms, how much the revenue was and how much it earned from the sale.
Reducing the influence of rumors
Another goal Apple wants to hide sales numbers is to reduce the impact of rumors; When we hear rumors about Mac computers, for example, and that no one wants to buy them, then we find the report that says a rise in revenues from Mac “caused by the increase in price, as we will explain in the next paragraph.” Here the rumors gradually begin to weaken because with the time the source, whether it is a specific analyst or a newspaper, loses its credibility More than once you talk about the collapse of a sector and we find that the returns are increasing, so the investor begins to ignore any rumors about the numbers because they cannot be confirmed and sales show an increase.
So far, all of the above is very logical, so why were investors angry at Apple's decision, then, causing Apple to lose 10% of its value?
The yield from higher prices
We explained this point in detail in the Fiscal Year article -this linkWe will repeat it briefly here because we will need it; Apple recently started to increase the prices of its devices, clearly and significantly. Imagine that the iPhone reaches the price of the higher version to about $ 1600, while the iPad reaches $ 2100 for the higher version (California prices including VAT tax), meaning that Apple profits more from raising the price of the device and not increasing the popular base, and here is the risk for the future.
An image showing the cost in case you want to purchase the higher-end iPhone and iPad from the Apple California Store.
To see how you can manipulate numbers; Imagine with me that Apple is selling 200 million iPhones at an average price of $ 700, which is 140 billion dollars in total. And the following year, sales decreased to 175 million, but the average increased to $ 800, a total of 140 billion as well. If Apple announces sales numbers, it will appear that the devices sold have decreased, but if you announce sales and hide the number, then here you will see that the number is fixed at 140 billion, and even increased profits (Apple's profit margin is high) and here the news will be positive. In this way, the number of the devices sold is hidden completely opposite to the news, from negative to positive news.
See the following picture, and you will see that the revenue of the iPhone clearly jumped in 2018, but digitally, Apple sold almost the same number of devices, as the number increased from 216.7 million to only 217.7 million.
The importance of a large popular base
Are Samsung sales bigger in 2018 or 2017? Of course, 2017 was bigger, and so was 2016 greater than 2017. But Samsung is facing a problem, which is the rise of China (Huawei - Xiaomi - Oppo), but due to the enormity of the popular Samsung base, it is still on top of the companies. When you have 200 million customers and 20 million get angry and decide to change, that means 10%, but if you have 100 million and 20 million leave you, that means 20%. And there is the importance of the broad popular base that it believes in your collapse. But if you have a few clients, leaving them will spell disaster. Therefore, the investor always needs to know the number of users of Apple devices to know whether it has a large number of customers, and if a product is issued with a problem and some get angry, it will not affect severely. Or the number is small. If some of them get angry and leave Apple, it will be a disaster.
Conclusion
Apple wants to significantly reduce available information and accordingly will become more resistant to rumors and negative news. On the other end, the information is very important to the investor, the more information is reduced, the more ambiguous the matter becomes, the additional risk and the greater difficulty in predicting the future. Thus, the average investor or the simple analyst is moving away from Apple and heading to it only two categories, namely, large investors who have huge analytical institutions that can accurately know sales Or the very simple investor who trusts the apple and sees it, it will reach 2 trillion, and this belief is driven by love and loyalty, not sales and numbers.
So, do not be surprised to see a fluctuation in Apple's stock during the coming weeks, up and down, but with time, it will return again to the trillion club and even compensate for all its losses (if there are no political crises affecting the economy).
A firmly greedy company, I do not expect it to return alone to the club's trillion dollar value or top.
They must be afraid of envy
Apple used to criticize Amazon for not announcing its sales figures for mobile devices, and today it applies the same policy, and the truth is not a policy, but rather an imperative, because the price massacre caused by Apple, which it was planning previously, has greatly affected its sales, which is expected in light of the shrinking phone market and intensifying competition, especially from companies. The Chinese and Samsung, the traditional competitor, and the article here, despite the author’s anticipation of responding to the accusation of his defense of Apple’s move, did not actually justify his defense of Apple’s last move, and this matter has become one of the firm policies of iPhone Islam, and they have the right to do so as long as their name is associated with the name of the iPhone Apple, and I share one of the commentators for advice. The brothers in iPhone have Islam to get out of the mantle of Apple into the wide world of technology and to own their decision without commitment to support a particular company in thick and thin because that restricts creativity and determines the type of followers that is on the category of Apple device users, while the space of Android is wide and welcoming and has a lot of Surprises and innovations and thus expand, as well as diversify your discourse, which has become known in advance of its bias for every step taken by the company, and if there is criticism, it is timid.
It has a very important aspect that many overlook, which is the availability of a wonderful iPhone at a low price, which is iPhone XNUMX, in addition to last and current year devices, it will be the place of iPhone XNUMX in two years
Apple relies on ultra-loyal, affluent customers to buy its new, expensive devices
And old models that contain the latest and safest operating system to attract new customers may attract some of them in the future to the highly loyal category
The truth is, Apple is the best in the world, and it has been throughout history, in administration and marketing
I differed and were harmed by its policies as a consumer, but when I look at it with the eyes of the manager or the marketer, I see it as the best ever
There is something hidden from Apple among its great popularity, which is the crisis of battery consumption in its devices, and most of those who talk about the battery have the intention to change to Huawei or it because of the battery and its age, and it is also unfortunate that you have friends who use other than Apple and phone batteries work for a much longer time than your phone at the price Fast consumption Apple coming to the abyss soon
Frankly, I am a fan of the iOS system .. and I have been carrying the iPhone since it was 3GS. But today I am thinking, and I decided not to buy the new iPhone due to its high price. I fully know the splendor of the processor, its capabilities, the stability and safety of the system, and many of its features. But the price is still too high for me.
And I expect many people to think the same way. (A prediction that depends only on my opinion)
All our words are wrong and incorrect, so Apple is winning and earning more and every year it profits more 🤔 Its sales have decreased or the value of its devices increased, so Apple has a secret mixture that I do not understand, but I am sure that it will review its accounts a lot by the end of this year (viewpoint) and no one has mentioned an important point, which is that the new devices Apple's very high value will drop a lot by the end of the year because the next generation will have 5g technology
After the new price level for Apple devices, which I started implementing last year with the iPhone X and penetrated it more this year with the iPhone xs and xs max, it has become expected for Apple to sell fewer devices, so selling a device at $ 1200 is not like selling a device at $ 750, which is the average price of the iPhone 8 and earlier. Roughly so, Apple resorted to concealing the number of devices sold because it is expected and natural that sales (demand) will decrease when the price rises, and this is what Apple does not want to reveal even though it is a negative decision and is inconsistent with transparency and does not harm the interest of investors and therefore they rejected it and the share price decreased and the number of units sold decreased in line with the Abjadiyat The laws of economics that we learned are the law of supply and demand
(Whenever ⬆️ price ⬇️ demand)
vice versa
But the profits are expected to not be affected due to the increase in the profit margin in the device from the previous profit margin, but it is not in Apple's interest to continue this policy. With the end of the great popularity and high demand, it is the one that brings the profits. As for the policy of increasing prices, it cannot be continued, so there remains a certain level that may become disastrous for Apple In it, the units sold are very low and it is opposite to them, especially in light of the shrinking global economic situation and in light of the fierce competition from other companies and the attractive equipment and offers it offers at much lower prices. There is a traditional rule known to merchants that says to sell a lot at a reasonable price better than to sell less at a high price because Success and continuation of the first method is more guaranteed than the second method
👀
Lover's advice:
IPhone Islam must learn from Apple how to change its rules and its way of dealing to earn more. Just as they found that hiding the numbers sold would benefit the company and other game rules. IPhone Islam has to change the rules of the game as well. The first change is to get out of the mantle of Apple. Whatever the influence of Apple, technology is a large and diverse world that is not limited to mobiles, computers and tablets .. The world is large and varied at every angle, especially with the entry of what they call the Internet of things .. Here on the iPhone Islam To become the technology of Islam and to enter the world in all its aspects.
As for the article, profits of the next two quarters will determine the value of the stock and its height, and such news is exploited by speculators to profit more.
In a statement to Tim Cook in his talk about the company's future secrecy
On the number of units sold:
This announcement comes after Apple revealed that iPhone sales did not change on an annual basis despite the increase in revenues of 29%, and that “the numbers of units sold do not represent the underlying strength of our business, and its announcement today is less important than in the past,” according to Maestre, who added that the increase in sales still has a share. Big plan of the company
.
This is a bit like going shopping and then asking the cashier how many things are in the cart, "when what matters is the total value of what is in the marketing cart."
The hint is clear
The phone sales number cannot be compared to $ 120
With a $ 1200 high-end phone sales number
But the blind people do not care about these details
It is published
Huawei ranks second globally 😂😂
Samsung ranks first in the world 🤔🤔🤔
Usually, cheap phones are better sellers
But it is not fair to compare it with the sales of the iPhone
Samsung, for example, to her hands
Class J
Medium class A
Class S class
So based on the profit figures, Apple ranks first in the world
By acquiring 60% of the global phone revenues
The rest of the companies share the remaining 40%
Apple announced the iPhone X and MacBook Pro screen not responding problem.
May God keep us busy, and we will not be caught up in the company's problems
A device priced at a thousand dollars and problems😤
And I like Chinese device buyers 😡
It seems that the company is no longer focusing on quality just on looting consumers' pockets
I am convinced or not. This does not change the fact that Apple is a greedy company that exploits its customers, and if I use its devices, this is because I do not see better than its products, unfortunately, especially the system.
Exactly 👌🏻
The largest company that fraudulently sells and dies on money more than anything loses the scandals that I have done with customers
Apple is trying to be the Rolex of technology. Either this drop we should not look at it from the angle of Apple itself or the technology. Rather, we must look at the market in general, the movement of money, buying and selling, and what Apple is going through is a natural result because all the markets are now in turmoil and the investor in the West cannot worry about The result of large profits is why, because America cannot maneuver a company like Apple with the movement of investment money and maneuvers are with the government in taxes, for example, and there is a margin allowed by countries to ignore the real tax associated with the sale
And I think that Apple got rid of some money because the large surplus will make it in trouble with everyone, an example of this is Europe's exploitation of the battery performance problem, and the iPhone will exclude it by law and will track its slips and most American giants adopt the current money policy, unlike Europe, which depends on restricting people to one financial direction. You can get out of it
This is the third time, iPhone. Islam, when I respond to the person in his comment, it does not go with this comment response that annoys me a lot and raises my pressure
Your comment is beautiful and sweet, my brother Ramzi. In our time, rumors abound
Thank you very much
Also, the goal of any investor is not to make money only, as mentioned in the article, but rather information must be known that explains where these profits came from and how the process took place, as an investment principle that concerns any investor knowing the details of these profits and not achieving them and their amount only, there is in the investment world what is known as operational profits and profits other than Operational and the difference between them is that the first is the profits achieved from the main activity of the company, whether sales or services, which is what concerns the investor, and he hopes that the profits of this type are of this type. Real estate owned by the company if it is an industrial company for example and has nothing to do with real estate activity, and the non-operating profits are not important to investors because they are non-recurring profits and linked to a single operation that is not part of the main recurring and continuous activity of the company for which the company is listed and cannot be relied upon in making an investment decision And the future investment outlook of the company. This is to clarify in general that the investor is interested in knowing the details of the profits and how they were achieved, and it is not specific to the case of Apple.
I have not heard about this investor except in Islamic banks. As for an investor and speculator, he asks to know who came the declared profits. This does not matter at all, especially in a company the size of Apple, meaning that it cannot engage in real estate development directly until the investor suspects the movement of its money in crooked or hidden ways.
Brother Staff, I mentioned in my last comment that what I have mentioned is general information that clarifies the importance of knowing the details of profits and is not specific to the case of the Apple company. As for your talk about the insignificance of knowing the source of profits for the investor, this is not correct, but it is very, very important, so how can the investor put his money in a company he does not know from where These profits were achieved and how the company’s main activity was going, and how did these profits come from its main activity, either from a non-recurring stroke of luck, or from other non-recurring and non-continuous deals that have nothing to do with the main activity of the company even if it was a correct and legal deal. The issue here is that if they are profits Non-operational, meaning that they are non-continuous and non-recurring profits, they have been achieved this year, but will not be realized next year and beyond. Non-Islamic is a general investment principle and you can make sure of that and ask specialists and thank you
????????????
But believe me to say
Are you really, Majid Ibrahim the rowdy 🤔
😄
Brother Ramzi, when you gave up on your annoying style, you stopped me from the quarrelsome and Safi Yalpen 😄👍
Thus analysis and style of the best 😇😇😇
Thank you, brother Ramzy, for your useful comments now ☺️🌹
Milk O cream 😁
We are waiting for what the days will tell us, whether Apple's decision is right or wrong.
I believe that this is a bad omen that future Apple devices will be extremely expensive, and they did not take this step until after they succeeded in creating a safe system for everyone looking to preserve privacy, and also crammed us with the compatibility of their devices with each other. For example, if you own an Apple Watch, it only works with an iPhone. The solution, in my humble point of view, is to gradually move to the Android and Windows system, especially with the presence of so many alternatives for these companies, and they must take advantage of Apple's raising of their prices by attracting new customers. At the same time, Apple will realize that its policy of raising prices is a failure and you will have saved a lot of money in exchange for some small sacrifices and you will learn about the advantages Maybe you missed it at Apple
Briefly, the topic consists of two tracks. The first track is relying on the number of devices sold to be supportive of the news of announcing profits and commensurate with it, and this path is followed if the company relies on increasing its profits on increasing the devices sold and increasing its popularity, which is the natural and reassuring path for any investor, while the second track is relying on The final net profits only, and ignoring the announcement of the number of devices sold, and this path is followed when the company intends to increase profits by raising prices and not increasing sales and increasing its popularity, which is what Apple has now turned to and undoubtedly is a negative shift and reflects the company's lack of confidence in selling more devices and from Naturally, it was taken negatively by investors and thank you for the good analytical article 🌹
Apple, with such a decision, will lose a large segment of shareholders because transparency is important for any investor, and then no one believes any announcement of profits without knowing the sales but a little.
By God, brothers, his shape is Tim Cook. He grew old and became sheep, and the company started to collapse from politics. He has graduate degrees, programming experience and engineering Sutter Tim Cook🚔😱🙄 heard me
Ok, Hamza
Head to California to inspect the conditions
And repair what can be repaired before it is too late
The time
If you need any support there
Message me on WhatsApp
Hurry, the situation is dangerous 🤫
Great, my brother Ramzi, God does not fail, may God be pleased with you if something happens. I want to send you a plane to come in, and my messaging is on synchronized because I don’t have your number on WhatsApp or tell the US federal investigation. They answer your number to me.
Lack of sales 🤔
IPhone XS sales disappointed this year 🤔
IPhone X sales are catastrophic 🤔
IPhone XR sales below expectations 🤔
.......
All these news are rumors
Bring your proof if you are honest
Yvonne sales are increasing year by year, and the numbers confirm that
As for the price of Yvonne, it is always expensive, so what is new about that 🤔
But the strange thing in the press is:
Samsung has decreased its profits in the phones division, but no one cares
So
Samsung dropped sales of its phones without much interest
Samsung is exposed to fierce Chinese competition without caring for it
One
One possible thing remains:
The collapse of the phones division in Samsung without more
And the press lives on its old glories 👑💫🌠📱🧨
If Apple does not change its policies and prices, it will follow Bankia, Apple is forced to raise the price to compensate for the decline in sales, which is an impractical solution. Apple has to make an actual change in its policies and products. I as a person lover of the iPhone and bought it a long time ago I stopped buying it about XNUMX years ago and I am thinking now Seriously buying a Samsung Note XNUMX or Huawei PXNUMX Pro
Nice analysis
The best phrase in the article:
"The important thing is the profits because you are an investor and not an amateur on the Internet. He wants an impressive sales number to envy his friends, who love other companies."
????
Indeed, whoever wants to dazzle his friends with these numbers that he has no camel to, and no sentences, is considered the worst kind of internet amateurs who empty their minds
Ha-ha-ha, how did you get it 🤣
I agree with you
Mohammad
Experience, darling, experience
😂😂😂😂😂
All what the Brotherhood said is correct, as Apple's profits are high, along with the lack of sales, which indicates that most of the iOS users have iphon8 and less, meaning that sales of xs have decreased, but the company is still winning a lot until 2018
This is strange ??
The company is losing its fans day after day and the reason is its expensive prices, monopoly, a locked operating system, a complex failure and restraining and locking up the freedom of the user. It is an arrogant and arrogant company that hates exposure. In the end, he cannot pay large sums
What the author said was a convincing but surprising analysis of one thing only. Why is Apple so arrogant about itself, its enemies, its fans and its competitors, and insists on increasing profits in exchange for the lack of sales? This decision makes Apple take steps forward towards more greed. And Apple's reputation in this aspect remains bad because it closed the door to sales numbers like this. In general, the biggest losers in Apple's decision are the newspapers and the media.
Countdown
I think and the world, God Almighty ... that this is the beginning of the descent, O Apple ... even though I am a lover and a lover, and all of my devices are from Apple, but I am afraid I do not want it to come down because I am one of its lovers
I do not think so
We heard this phrase 6 years ago
And we'll hear it for the next 6 years
Without reality
A company that does not profit goes bankrupt and that does not innovate deposits the market
God have mercy on your days, O Steve bin Abdul Fattah
A greedy first class company
Yes, that he agreed with you