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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1. kiko007

Posts: 7493; Member since: Feb 17, 2016

"Apple held $256.8 billion in cash and investors are demanding that Apple deploy the cash either through a huge one-time dividend, or by making a huge acquisition." When are those idiots gonna learn that "making a huge acquisition" rarely ever ends well for either party?

61. yann

Posts: 614; Member since: Jul 15, 2010

I want to start with that: I'm not Apple fan! Apple is great business company. Why? The whole idea of iPhone business is very clever and genuinely created. Think about it: 1. App store has highest revenue for the owner. Taxes and rates are much higher than Android store. The apps must be certified by Apple. This keeps store with less bloat and clone apps. 2. Property ports - to produce chargers, cables etc. compatible with Apple lightning port you must pay much higher fee. 3. iPhone accessories are great supplement to the company portfolios. Headphones, stands, external speakers, watches, AirPods, etc. All of them are greatly welcomed by Apple consumer society. They are impatient to spet their money - to give it to Apple. All is part of greatly developed strategy, that runs smooth and bring huge profit to the company. How many companies sell 50mill devices for grist quarter without announcing new device? Yes, the fees, the taxes, the prices are high, but Apple win that right by attracting so many customers and made them loyal! With long service support, with great Apple care service, even after warranty - my friend's iPhone 3gs had broken charging pott, years ago, but in Apple store they just gave him new one. For free. How not to be loyal for such a service? Still, I'm not using Apple devices and services, but that wouldn't make me say that Apple is bad company, or produce garbage products. The company status speaks for itself. When the facts or numbers are speaking, even the Gods keeps silence. P.S. Sorry for my English - and I don't look for fight with Apple or Android fans.

2. Jeradiah3

Posts: 1149; Member since: Feb 11, 2010

Apple is too cautious to do that!! Honestly...........Apple hasnt improved their phones that much like Android has over the last few years. I dont know if Apple is just old-fashioned or doesnt see that what Android is doing is worth adding to their phones (MicroSD Card Slot for example) I dont think that Apple is going to crash and burn BUT they need to be innovative again to remain relevant

5. kiko007

Posts: 7493; Member since: Feb 17, 2016

"I dont think that Apple is going to crash and burn BUT they need to be innovative again to remain relevant" Remain relevant? They sold 50 million phones in a quarter where they didn't release any new models, just refreshes. Their service sales are up 18%. Wearables saw an increase of 31%. The only product I see struggling is the iPad, and looking at Apple's ASP regarding phones (which went up from $642 to $655) it's due to more people buying Plus models. How are they struggling to remain relevant?

8. Unordinary unregistered

Armchair analysts who need to get laid fishing for green thumbs... what else is new lmao.

9. maherk

Posts: 6879; Member since: Feb 10, 2012

Didn't he say REMAIN relevant? REMAIN?!! He clearly acknowledged that Apple are still relevant, but he is saying that this might not stay the same if Apple kept playing it safe.

10. kiko007

Posts: 7493; Member since: Feb 17, 2016

Does that NEED saying though? Anyone who knows anything about business at that level knows that already. I'm just trying to understand why he chose to say that here without context. It's not like Apple released an iPhone model this quarter anyhow. Just seems... odd.

16. maherk

Posts: 6879; Member since: Feb 10, 2012

How is it out of context? The article is talking about Apple falling short on the estimated units they were supposed to sell, and he gave reasons why this might be happening and how it could affect them in the future if they didn't up their game. I understand you're an Apple fan, but your fanboyism is taking away from your credibility. And I'm not trying to start an argument with you, but​please practice what you preach for, you're always one of the 1st people to comment and troll Samsung and their fanboys whenever there is a negative article about one of their products, and in most cases, your comments are be out of context.

22. nctx77

Posts: 2540; Member since: Sep 03, 2013

Dude Apple iPhone sales are slow estimates because of the looming iPhone 8. It's just as simple as that!

38. ColinW

Posts: 412; Member since: Jun 04, 2014

Why, were they down last year when sales numbers were down significantly too? What were they holding back on then, the iPhone 8 too? Seeing as the 8 looks like it may not surface properly until 2018, it is more likely that the markets that are growing are not buying iPhones and/or Apple lack of innovation and old designs are not attracting customers to upgrade.

71. bobby84

Posts: 595; Member since: May 13, 2016

kiko is butthurt don't mind him

21. sgodsell

Posts: 7368; Member since: Mar 16, 2013

"The only product I see struggling is the iPad, and looking at Apple's ASP regarding phones (which went up from $642 to $655) it's due to more people buying Plus models. How are they struggling to remain relevant?" Kiko007 you truly are blind, their MacBooks are down as well. The new MacBooks with the touch bar and only USB-C ports have the worst sales since MacBooks were introduced. Not to mention this is the first time anyone has seen the new iPhone's go for zero dollars. Everyone has always seen the new iPhone's sell above zero dollars until the next iPhone is released. I guess a 3 year old iPhone model doesn't cut it after all. Especially since Android grew and Apples market share shrank again for this quarter. Apple shrank in Q1 2016, Q2 2016, Q3 2016, and now Q1 2017. Apple is behind in all the latest technologies in comparison to Android, and in some areas is nowhere to be found, like AR/VR/MR. If it wasn't for Googles​ Cardboard, Apple wouldn't​ even have a glimpse of VR. Like it or not Apple is behind when compared to other platforms, like Android.

24. kiko007

Posts: 7493; Member since: Feb 17, 2016

"Kiko007 you truly are blind, their MacBooks are down as well." Actually, MacBook revenue was up at 4.2 billion. Not sure if I want to delve into the rest of your tardness, being I have better s**t to do.

46. KingSam

Posts: 1449; Member since: Mar 13, 2016

Apple will remain relevant for years to come. Brand perception and status. Struggling? Take $50 off the asp and sell like hotcakes. Thats the apple reality and btw im an android user. Only thing ios i would consider is an ipad.

28. fyah_king unregistered

Oh, it's Timmy's boyfriend.:)

30. kiko007

Posts: 7493; Member since: Feb 17, 2016

How's that private island suiting you?

32. fyah_king unregistered

Living like a king!!! My life is great and no worries about money or a job. I just gotta take care of my 6 kids .:) It was a foggy road but i found my way.:)

33. kiko007

Posts: 7493; Member since: Feb 17, 2016

"I just gotta take care of my 6 kids..." Damn... and I was terrified by the one I'm having. Good luck with that.

47. fyah_king unregistered


39. RoryBreaker

Posts: 218; Member since: Oct 11, 2015

How's that iWatch doing again?

42. kiko007

Posts: 7493; Member since: Feb 17, 2016

Must not have read the "wearables up 31%" portion...

56. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Actually I see that when apple sales falls is actually good for their user base. It mean Apple is willing to do more to get a sale which is good for everyone that wants to buy their product. They may add the most requested feature, lower their price slightly like the new iPad or even give better bundled deal. When they are high and mighty, they would let their fan grovel at their feet.

44. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

When was Apple innovative? They take existing ideas and improve them. Which is fairness is innovative. But it's not that no one else is doing. But rh3 .ca us are, Apple buys everything they have. Apple didn't make multi-touch possible. Someone else did. The iPhone is an evolution. Steve Jobs and Apple have always been good at marketing others ideas. Yet have zero of their own. Apple products don't need e Rey feature Android phones have. Just like OS X doesn't have to be like Windows. The problem is simple. Apple is behind because they choose to be. To stay ahead of the game take a spending money. APPLE DOESN'T WANT TO SPEND MONEY,. SEE STAYING g behind means you let others spend all the money making it all possible, and you come 3 years later and buy it cheaper and when it matures. When everyone else is done with it, you capitalize on the fact you have loyal stupid customers who don't care who has it first, but are willing to wait for you to have it, no matter how long it takes. Apple is doikmg what video game company's did...just milk your fan base by just giving them a glimpse of the future that already exists, so this history for e eryone else is still the future or Apple. Example, we had wireless charging for 3 years now. It's now old news. What was once our future is now our history. Bit it's still the future for Apple because they don't have it yet. The problem with rushing to th3 future, is you have to keep spending to stay ahead. Eventually you hit a wall. Then what? Well then their is Apple ringing up the rear making money off your hard work. The way Samsung and Google can kill Apple is to stop pushing forward. If they stop pushing forward Apple won't have a future to steal and they die a horrible death. Everything Apple has is because it existed in their future. Take away Apple future and they have nothing and then like history they repeat their fail over and over until they disappear.

45. kiko007

Posts: 7493; Member since: Feb 17, 2016

Great... Mr.Altfacts is here. This should be interesting.

75. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

I didnt make any alternative facts. It was just an opinionated observation. Instead of being critical, why not bring similar as oppose to trolling. Everything I said was based on facts. For example, where did Apple get the idea of building a computer to begin with? Its because Woz was in a computer club and learned to build them. Computers were a thing of the future. Apple made their own and the rest is history. Where did Apple get the idea of an windowing apps? XeroX PARC already created that future, but it was never made available ot the public because Xerox had no idea what to do with it. Apple took that possible future from XEROX and made it their futures and the rest is history. Microsoft came and took Apple's future away and absorb all the rest of the computer market and left Apple with their small piece. The Mac is all but dead accept for the people who still waste money buying them today. The Mac has no future. Then consider the iPod. Creative, Sony are a few names who already had music players. But Apple saw a future with it and made it in a hype thing to have. The failure of the iPod was actually created by Apple themselves. After years of success, Apple didn't want to be known as a music player company, and thus the iPhone was born. The took the iPod, the Touch in this case and made it into a phone. At this point it was no longer cool to have an iPod, it was cooler to have an iPhone. By rolling up the 2 products into one, Apple eliminated the need for a separate device. So Appel killed the future of the iPod with the iPhone. Then you think of old tech like SCSI. Apple found a way to make it smaller, but they didn't make it cheaper. Fire-wire is simply SCSI in a better form. But its biggest drawback was cost and limited capability. So when the USB was born, it has the benefits of firewire, but the main thing is it cut the cost. Because of the cost saving, it allowed the tech to be used for other things, which basically cut off the future Firewire had and thus it failed. Those are proof of concept of what I said. Do you still consider them alternative facts? Or are they simply a perception of what really happened? Or maybe I am simply right. Apple has no future if it means making their own stuff. Apple future will continue as long as they have someone else's past/history to evolve.

64. Tech-shake

Posts: 213; Member since: Nov 14, 2016

I am sorry but your comment is very ignorant. Yes Apple stole the GUI from xerox, but Steve made his engineers integrate different font style into it, got rid of the mouse which moves in two directions and made a mouse which moves in multi directions ( the ball mouse), and got his engineers to make overlapping windows ( multi-tasking). All these things seem trivial today but it was thanks to apple they happened. Yes the iPod was just the right technology at the right time, but Steve pushed he Apple engineers back then to make the first portable music player which had a 1000 songs, the click wheel was innovative and simplified the process so much more to navigate your library without having to click on thousand time to reach from the first to last song. Steve always had a saying, " the mark of an innovative company is the one that does things first, and knows how to leap forward when they see themselves left behind" apple history prior to Tim Cook is filled with stealing great technology that has been in development for years and show case them to the world first. Now Apple is just copying what everyone is doing after 3 years of them doing it!

63. yyzamin

Posts: 382; Member since: Aug 26, 2015

Apple will always be relevant in Western Countries. The majority of people want fast, lag free, 1st to get apps phones and fast updates. Apple ticks all those boxes. The Android elite that you hear complaining that apple is not innovating look at specs and assume android is more powerful.

72. path45th

Posts: 405; Member since: Sep 11, 2016

Apple has stuck with retina display and bezels. However, there were the first to introduce a well implemented finger id sensor, 64 bit processor, forced touch, optical zoom at the same time as they have made their phones waterproof. Moreover, apple's processors are the best in the market and nobody has managed to optimize them so well with their iOS and apps. Not to mention that iOS has the least fragmentation. Because Apple has a conservative approach it doesn't mean that they don't innovate. They speed forward slowly with confidence.

77. AlikMalix unregistered

@POST #2 Jeradiah3 "Apple hasnt improved their phones that much like Android has over the last few years" What is improvement in your opinion? Is it fair to say that Android device improved since 2008 to be more fluid and stable (like iPhones were from the beginning)? Also ability to control app permissions like iOS did from beginning, add Android Market to follow App Store, then rebuild it as Google Play. Android phones see more aluminum and glass like old iPhones were. Still no face to face support like Apple Store. Not asking for a fanboy fight, just wondering what's "improvement" in your opinion. Apple has added just as many of their own features that andoid still lacks. You still have no FaceTime and iMessage equivalent. The OS updating and support has a long, long way to go. Android phones still have trouble managing background tasks. Security (regardless of what google CEO's say) is still a much bigger problem than iOS ever was... Apple improved iOS services over the years, has a library of it's own Apps like GarageBand, Pages, Numbers, Keynote, (I use Numbers and it's ties with Cloud everyday for business) added other services like Apple Pay that pushed mobile miles farther than Google Wallet failed during its 2 year head start. Improved the infrastructure for the app developers with things like Metal, new API's, full 64bit infrastructure and recently brand new, restructured File System (APFS), to mention a few... Tied iOS to Mac (and PC) in more coherent ways and operations. It's Cloud communication between iOS, Mac and PC is top notch. As far as hardware, well Forcetrouch, 2x optical camera, airpods with seamless connectivity and better battery than competition, best selling smartwatch with it's own app store. iPad still overall better than anything android offers, unique features of Apple Pencil specifically targeted for designers and artists. These are just few things off the top of my head. Android has it's own perks and breakthru's, but lets not devalue what apple is doing with it's iphones and iOS. In my opinion microSD card slot is something brought from the past, not something for the future... "wireless charging" isn't really wireless. NFC file transfer has been superseded by AirDrop and basic free apps (who in the world still taps their phones together). Having the need for Antimalware and antivirus apps in your Google Play store isn't really innovative, it's actually the opposite, it's a solution to a problem iOS doesn't really have, unless you're a VPN junkie form china... So, what is "improvement" and what improvements does android have that iOS doesn't?

82. Marcwand3l

Posts: 439; Member since: May 08, 2017

Interesting interpretation that follows the classic line of giving apple more credit than it deserves. it's always amusing to read about how Apple released an ARM chip with the 64bit extension that was created by ARM itself and how Apple gets all the credit. Yeah Apple's design cycle corresponded with ARM's implementation or the 64bit extension for their architecture but apple fans act like it's something incredible and give Apple all the merits.

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