[chollida1]

My notes:

Numbers:

- Q Rev. $51.5B to $53.5B, Est. $51.4B

- Q2 2018 revenue of $61 billion, equaling analyst's estimates. That's 16 percent growth from a year ago. It's the fastest year over year expansion since 2015

- Apple sold 52 million iPhones in the second quarter, compared to 50.1 million units in the year-ago quarter. This represents year-over-year 3 percent unit growth and 14 revenue growth

- services revenue up 31 percent from a year ago and 8 percent from the preceding three months.

- Quarter over quarter, iPhone sales fell 32 percent in terms of units and 38 percent in terms of revenue. The average selling price was $728 per phone compared with an average estimate of $740.

- The iPad made gains from a year ago. Apple sold 2 percent more in the second quarter from a year ago with a 6 percent revenue gain. It sold fewer Mac computers compared with a year ago and revenue was flat.

- other revenue, watch, pay, tv, etc Revenue was up 38 percent from a year ago.

- Cash at end of 2Q $267.2 billion vs $285.1 billion q/q

- est. 3Q operating expenses $7.7 billion to $7.8 billion

- est. 3Q tax rate about 14.5%

Commentary:

- apple store now has 270 million paying subscribers - that's 100 million more than a year ago.

- - In a note to investors, Morgan Stanley said it expects Apple to hike its capital return program by $150 billion to a total of $450 billion in returns by 2020. This would be up from the $300 billion program announced last year, which was expected to run through March-2019. Apple is also expected to up its quarterly dividend to 0.945 cents per share, up from the current 63 cents, according to Morgan Stanley.

- Apple was the largest non-financial issuer of U.S. investment-grade bonds last year.

and from Jon Elichman this was intersting

Number of iPhones sold in Q2:

Q2 2018: 52.2 million

Q2 2017: 50.8 million

Q2 2016: 51.2 million

Q2 2015: 61.2 million

Q2 2014: 43.7 million

Q2 2013: 37.4 million

Q2 2012: 35.1 million

Q2 2011: 18.6 million

Q2 2010: 8.8 million

Q2 2009: 3.8 million

Q2 2008: 1.7 million

[IBM]

>- music now has 270 million paying subscribers - that's 100 million more than a year ago.

That has to be wrong. They were at 40 million a few months ago.

[chollida1]

Your right, not apple music, I mistranslated there:). Appreciate the fact checking:)

[nkkollaw]

You're

;-)

[ksec]

>Q2 2015: 61.2 million

Worth pointing out 2015 was the last super cycle, which was the iPhone 6 and 6 Plus, Apple sold 74.5 million iPhones during the first quarter of fiscal 2015 year.

So in terms of unit in two Quarter combined, 2015 still sold more unit.

Personally i am not too happy with China's growth.

[brisance]

Q2 2015 was an anomaly and Cook even said so at that time.

They still got more profit from selling fewer units due to highe ASP.

[hw]

Unit sales across the iPhone, iPad and Mac were a bit disappointing but better than I expected. Still, AAPL is a behemoth and the buybacks and dividends are welcome news

[diminish]

Why were you disappointed? Imho a traumatic unit sales drop was feared due to some supplier numbers but it didn't happen. What were you expecting?

[toasterlovin]

At this point only fools peg their Apple expectations to supply chain rumors.

[hw]

Well, iPhone sales have been pretty stagnant. The new iPhones Apple rolls out every year isn't exactly revolutionary. Not sure how long they can keep this up and expect people to buy new phones every cycle or every 2 cycle. The X was disappointing, given the hype, and I'd be interested to see the X sales numbers.

The Macbook Pro line is also suffering some hardware issues - keyboard, batteries, touchpad. The touch bar also has been a real annoyance, and I've been favoring my 2012 rMBP over the newer models.

[veidr]

Do you have an iPhone X? I'm not a big fan of Apple; I've been rooting for Android for years, and I carry two phones: a Google phone and an Apple phone.

IMO the iPhone X opened up the widest lead for iPhone there's ever been (and for work reasons I have had every generation of iPhone, and a recent high-end Android phone, usually Google's Nexus then Pixel models).

When I use the fingerprint sensor on my Pixel 2 XL, I feel like a caveman rubbing sticks together trying to make a fire. The face recognition Apple did is absolutely a huge, huge upgrade. I want that on all my devices including computers and doors.

When I see them side by side on my desk in their angled charging docks, the iPhone X screen is so much better than the Pixel 2 XL, it is hard to believe they are both using the same fundamental OLED display technology.

When I compare the precision-machined metal and awesome balanced hand-feel of the iPhone X with the plasticky cheap crap feel of the Pixel 2 XL, I wonder if Google even knows what a nice tool is supposed to feel like.

When start to use my iPhone X to ask Siri something verbally, I... go like Wait, what the fuck am I doing?? and reach into the other pocket and pull out the Google phone.

What I am trying to say, though, is that even coming from all the previous iPhones, the iPhone X is a fantastic upgrade, it feels to me like the biggest advance over the previous generation that iPhone has ever seen. The software still kind of sucks, as it has since iOS 7, but in terms of the device, I don't think it is disappointing at all when compared to any/all devices that have ever existed.

Only perhaps when compared to people's imaginary ideas of what the cutting-edge next-gen iPhone might be, could it really disappoint.

[hondo77]

The X was disappointing even though it was the top-selling iPhone every week of the quarter?

[ghazak]

Whether it’s disappointing or not is always relative to what expectations were.

[mcphage]

Common expectations were that it was a sales dud, which clearly was not the case.