Apple misses the mark, sells 50.8 million iPhone units in fiscal Q2 vs. expectations of 52 million

Apple misses the mark, sells 50.8 million iPhone units in fiscal Q2 vs. expectations of 52 million
Apple reported its fiscal second quarter earnings this afternoon. The tech titan said that it fell short of Wall Street expectations pertaining to iPhone sales. With analysts expecting about 52 million iPhone handsets to have been rung up in the three months ended in March, Apple said that 50.8 million units were actually sold. CEO Tim Cook told CNBC that the company is noticing "a delay in purchasing behavior." That could be due to the 10th anniversary Apple iPhone 8 that is expected to be released later this year with many new features, including an AMOLED screen. As Apple's CEO points out, Consumers could be holding off on purchasing a new iOS powered handset until the premium iPhone 8 is unveiled later this year.

Fiscal second quarter iPhone sales also fell short of the 51.2 million iPhones that Apple sold in the same quarter last year. Part of the problem with iPhone sales for the 2017 fiscal second quarter was that overall, the company reported a 14% sales decline year-over-year in China. According to Tim Cook, not including China, Apple grew iPhone sales "nicely" during the three month period that ended in March.

For the 2017 fiscal second quarter, Apple reported $52.9 billion in revenue vs. the $50.56 billion it grossed last year. That works out to a 4.6% gain in the top line. Earnings per share rose 10.5% to $2.10 per share vs. $1.90 per share for the 2016 quarter. Apple made $11.03 billion in profits from January through March 2017, against the $10.52 billion in profits it garnered during the same quarter last year.

Cook pointed out that App Store sales were up 40% for the quarter, with a 20% increase in the number of developers. According to the executive, Apple has strong momentum in services. At the end of the quarter, Apple held $256.8 billion in cash, and investors are demanding that Apple deploy it either by distributing a huge one-time dividend, or by making a huge acquisition.

Investors are using the report as an excuse to sell the stock. After hours, Apple's shares are down $3.42 or 2.33% to $144.07.

source: CNBC

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80. neron5

Posts: 30; Member since: Jun 05, 2012

The question is, why are they selling so many millions of expensive iPhones? It is because the carriers are financing the devices. For only 20€ month, anyone can have a 800€ device. It is a round deal.

78. trqster

Posts: 177; Member since: May 17, 2013

Apple should buy Microsoft!

73. xfire99

Posts: 1207; Member since: Mar 14, 2012

So, if Android handsets doesn't sells well and that's because people's are holding off for next flagship model releases? If Samsung S8/S8+ doesn't meet expectations and I'm sure it's due to Note 8 then. Freaking excuses.

74. trojan_horse

Posts: 5868; Member since: May 06, 2016

But those excuses do hold some grounds too!!

69. techbuttcheex

Posts: 205; Member since: Jul 25, 2015

that spin

68. raky_b

Posts: 456; Member since: Jul 02, 2014

profit, profit, profit....while workers is suicedal since they are not making enough for their families.

65. Tech-shake

Posts: 213; Member since: Nov 14, 2016

Apple today is doing the same thing IBM did when Apple was founded in 1979. Ignore the market, focus on improving their existing products, and depend on their market position to move forward. If history has anything to tell us, then the consumers are fair. When a company stops inovating for a long time and the competition surpasses them marginally, the customers will jump ships and move forward. Hopefully Apple does realize that soon. The only thing stopped so many of my friends from jumping to android is FaceTime and iMessage! Apple is literally depending on their services to sell their hardware. The question is just for how long will this go?

53. darkkjedii

Posts: 31798; Member since: Feb 05, 2011

Hey cnour, did you know Apple missed its mark? We'd love to read your thoughts on the issue. Techie says, it could be due to the outstanding S8's preorders...well, I said outstanding.

54. lolatfailphones

Posts: 224; Member since: Apr 08, 2013

How's that's red tint in your s8 screen?

70. darkkjedii

Posts: 31798; Member since: Feb 05, 2011

@lolatfailphones. Doesn't have it. Mine is perfect. How'd you like the iPhone yellow tint, and purple lens flare, and white screen of death, and iOS 8, and...welll you get the picture.

55. cnour

Posts: 2305; Member since: Sep 11, 2014

I'm here. But don't ask me to comment Techie comments since I need two weeks to finish them. Only one comment, more his comments are long more he is frustrated. Apple missed its mark since it sells 50.8 million iPhones!!!!!!! I hope Apple will continue missing.

50. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

What's funny is the iPhone 7 has been free on all major US carrier's since preorder. ALL of them have some type of iPhone Forever plan. They all had GO TO deals on them too and the sales still fell. I don't care how much .money they make. They need to save every penny. This is why they several that money to it relevance. They don't make a damn thing. They let others spend the most money and innovate while just comes and make a few changes and claims it we and theirs. Next year we will real how they will sell lesser phones. After the Xmas holidays.

35. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

He doesn't want to admit the fact many people likely bought the Galaxy S8. After all why wait for the future when you can have it now? Of course PA won't admit it either.

62. cnour

Posts: 2305; Member since: Sep 11, 2014

Last year you said that the increase in iPhone sales is NOT due to Note 7 fiasco and today you are saying that the decrease in iPhone sales (if we can call this a decrease) is due to S8's preorders. Sorry but who is a sheeple? I repeat that you need to consult a psychiatrist. There are a lot of things more beautiful in this life other than writing stupid huge nonsense comments. ps. Take some of your comments with you and show them to the psychiatrist for good diagnosis.

67. willard12 unregistered

"Sorry but who is a sheeple? " Well, according to Merriam-Webster......

76. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

What increase did Apple have? Let's to the math. With the iPhone 6S. Apple had 2 quarters where they sold 70M+ of them. That was in 2015. In 2016 they sold roughly the same amount of phones. What increase are you speaking of? Please get your facts straight? What year did the Note 7 come out. 2016...Correct? It was on sale for a month roughly. Right? Did Apple see some extra sales because of the Note 7? The fact is you have no idea. You can say maybe. You could also say, since people saw the iPhone 7, they decide to go buy the 6S onstead because ot was now cheaper and the iPhone 7 offered no benefit for the higher price tag. Here are the facts bruh!!!!!!!!!! In Q4 of 2015 with the 6S available, Apple sold 75M iPhone's. A year later in 2016, Apple sells 77M iPhone with the iPhone 7 being available. Question, if the Note 7 demise increased sales, then why was the year over year sales only about 2M more? FACT - the Note has roughly 30~40M owners. This is based on the Note 3 selling over 30M. The Note 4 and 5 all sold at least 25M each. Neither reached the Note 3 sales, but the Note 7 would have. At that point, Samsung release roughly 4M Note 7 in 30 days. But based on the PA article, only 1/2 of them had actually shipped. 100,000 were sold in Korea several more in China and then the US. Then they were recalled. Then they were released, but only those who had the original were taken care of first in the US which was just over 1M people. Question. When the Note 7 was recalled a second time, why didnt 10M+ people go buy an iPhone 7? After all look at the year over year numbers. The difference was 2M people. Out of those 2M more people who bought iPhone, can you say with a certainty as to how many bought an iPhone because of the Note 7? NO YOU CANT...I can really cant say they didn't. What I can say, is; with 4M Note 7 has sold that the S7 was a betetr replacement because peopel who use Smasung apps can only use them on Smasung devices. SO you cant or wont want to lsoe data tryign to move iOS. Facst show Samsung had a huge surge in sales of the S7, which is why they sold 50M, when they had before the note 7 demise, only had sold about 40M. So based on the facts, more people for sure got an S7 which PA posted a story stating, Samsung states that 90% of the note 7 owners moved to the S7/S7 edge. Where did the other 10% go? Well they could have kept their older Note 5's as an example. Some could have bought an iPhone, but surely it wasn't many as the numbers truly tell. Or they could have bought something else entirely.

18. cleatglitch

Posts: 170; Member since: May 25, 2013

how can you have 250b...and just build a huge headquarters...somebody ain't paying somebody

23. kiko007

Posts: 7525; Member since: Feb 17, 2016

The HQ was 5BIL so....

15. darkkjedii

Posts: 31798; Member since: Feb 05, 2011

Cnour! Are you gonna call out TechieXP now?

14. abdoualgeria

Posts: 928; Member since: Jul 27, 2015

Why apple revenue/profit ratio is high compared to other companies ?

19. cmdacos

Posts: 4412; Member since: Nov 01, 2016

Reusing parts

27. L0n3n1nja

Posts: 1613; Member since: Jul 12, 2016

They are among the most expensive phones on the market while among the cheapest to produce. They user cheaper screen tech with lower resolution, they skip gorilla glass, they offer less storage for the base model, and have other lower specs compared to Android phones. Than to top it off they have a HUGE fan base so they sell a lot of their expensive phones while Samsung and many others sell a lot of cheaper handsets, and flagships like the S8 cost noticeably more to produce so the profit margins aren't as high while having a lower sales volume.

29. fyah_king unregistered

But, the sheep will say that their icrap cost more to make .lol

13. L0n3n1nja

Posts: 1613; Member since: Jul 12, 2016

Sales are bound to slip when you introduce nothing new.

12. palmguy

Posts: 991; Member since: Mar 22, 2011

Could it be more people are buying other phones?


Posts: 2818; Member since: Oct 03, 2012

Like i said before iphone sales will keep declining, yes they make profit because they raised the prices! iPhones are dying there is no denial, apple does not innovate they merly copy. Give it a few more years, they are already on the 3rd place. My prediction is 5/6th place in 2020!

66. AlikMalix unregistered

3rd place in what?

7. darkkjedii

Posts: 31798; Member since: Feb 05, 2011

This is pretty much due to iPhone 8 anticipation, and 3 years of the same design.

41. RoryBreaker

Posts: 323; Member since: Oct 11, 2015

And maybe slightly the move away from headphone jack. I personally know 2 people that left the iphone for that reason alone.

49. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Or b3cause pwople saw the S8 and preordered it instead?

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