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Apple Crushes Expectations, Sees Record Holiday Quarter (axios.com) 97

Apple on Thursday reported sales and earnings well ahead of projections, and said holiday sales should be a record and ahead of many analysts' expectations. The company sold 46.6 million iPhones last quarter, which came in about 500,000 units ahead of expectations. Axios reports: Going into the earnings report, there were concerns about both iPhone 8 demand and iPhone X supply. Thursday's report should go a long way toward answering those questions. Sales were up in every region expect Japan, where business was down from the prior year, though up sequentially. Notably, the company finally saw a much-needed turnaround in Greater China, where sales of $9.8 billion were up 22% from the prior quarter and 12% from a year ago. The company's business has been weak in China for some time, though the company had predicted improvement this quarter. Apple reported $52.6 billion in revenue (vs $51.2 billion estimated) and per-share earnings of $2.02 (vs $1.87 estimated). In addition to the 46.6 million iPhones sold (vs 46.1 million estimated), the company sold 10.3 million iPads (vs about 10 million expected) and 5.4 million Macs (vs about 5 million expected).
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Apple Crushes Expectations, Sees Record Holiday Quarter

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  • by turkeydance ( 1266624 ) on Thursday November 02, 2017 @09:03PM (#55480145)
    4th of July and Labor Day is all i've got.
  • So I can't help wondering about the REAL costs of Apple's profits. No, I don't think Apple is destroying the planet to the degree that the Koch brothers and Exxon do. No, I don't think Apple is an evil empire like Microsoft was in its monopolistic and abusive heyday. I actually think the google has much more potential for cancerous and evil growth than Apple does, but the jury is still out and I don't want to ignore Apple's ability to create profitable fashion stampedes around peculiar fads.

    And yet, I recal

    • by Anonymous Coward

      What's the difference between "Soulless, huge, immoral, and immortal companies running amok in search of infinite profits without any control" and the US federal government?

      Apple made a few tens of billions and probably avoided paying some taxes. The feds rake in trillions each year, murder foreigners at will, invade other sovereign nations, imprison innocent people without trial, encourage local entities to engage in civil asset forfeiture which is tantamount to theft, craft laws and regulations that cont

      • by maralatho ( 5087207 ) on Thursday November 02, 2017 @09:43PM (#55480287)
        As history has shown, there is little difference between huge governments run amok and huge corporations run amok. See: East India Company.
        • As history has shown, there is little difference between huge governments run amok and huge corporations run amok. See: East India Company.

          The various &;lt;insert nationality here> &;lt;insert region or nation here here> companies were able to do what they did because their home governments extended to them the right to borrow their monopoly on force. When governments do their job and keep corporations in check, not least by preventing them from exercising violence instead of actually condoning it as in your example, they have far less ability to do harm.

        • As a matter of interest I do wonder what the East India Company did that was different from any government policy of the day. I mean I know about the general warfare and slavery but that was generally accepted at the time and not really attributable to differences in government vs mega corporations.

        • That's because corporations get their charter from the government - they are fictitious entities of law which derive all of their power directly from the government. We call them "private", but really they act at the behest of government - which can make arbitrary regulations and interfere in any way they choose.

        • I no fan of Apple, Google or Microsoft these days, but comparing them to the East India Company is a bit of stretch. The EIC had private armies and took over most of India. In fact it was the de facto government of India until the UK government intervened and shut it down.

          https://en.wikipedia.org/wiki/... [wikipedia.org]

          During its first century of operation, the focus of the company was trade, not the building of an empire in India. Company interests turned from trade to territory during the 18th century as the Mughal Empire declined in power and the East India Company struggled with its French counterpart, the French East India Company (Compagnie francaise des Indes orientales) during the Carnatic Wars of the 1740s and 1750s. The Battle of Plassey and Battle of Buxar, in which the British, led by Robert Clive, defeated the Indian powers, left the company in control of Bengal and a major military and political power in India. In the following decades it gradually increased the extent of the territories under its control, ruling the whole Indian subcontinent either directly or indirectly via local puppet rulers under the threat of force by its Presidency armies, much of which were composed of native Indian sepoys.

          By 1803, at the height of its rule in India, the British East India company had a private army of about 260,000â"twice the size of the British Army.[5] The company eventually came to rule large areas of India with its private armies, exercising military power and assuming administrative functions.[6] Company rule in India effectively began in 1757 and lasted until 1858, when, following the Indian Rebellion of 1857, the Government of India Act 1858 led to the British Crown's assuming direct control of the Indian subcontinent in the form of the new British Raj.

          • I no fan of Apple, Google or Microsoft these days, but comparing them to the East India Company is a bit of stretch.

            I didn't make that comparison. I don't consider Apple, Microsoft, or Google to qualify yet as having run amok. But put a money-mad psychopath in charge of any of them, and you've got a problem. The potential to run amok is there.

            • The East India Company wasn't running amok though. Parliament granted it a charter which gave it a monopoly on trade in a big chunk of the world. The EIC then acted inside that charter which gave it more or less absolute power in the area the charter applied from the perspective of the UK government. If any other state quibbled with that absolute power, the EIC was empowered to raise armies and fight them.

              Of course the advantage to the UK government was that if the shit ever hit the fan and the EIC did some

              • The East India Company wasn't running amok though. Parliament granted it a charter which gave it a monopoly on trade in a big chunk of the world. The EIC then acted inside that charter which gave it more or less absolute power in the area the charter applied from the perspective of the UK government. If any other state quibbled with that absolute power, the EIC was empowered to raise armies and fight them.

                Not only is this running amok, it's a government and a corporation conspiring to run amok together. The worst of both worlds.

                • Well that's my point really. Corporations are very dangerous when they have a government to grant them the sort of power that EIC got.

    • The firing was pretty much justified; that was clearly violating NDAs and security policy letting your adult daypughter take a video of a "secret" space.

      As for splitting Apple... are they "too big to fail?" Are they monopolists, dominating a sector? Are they a national security risk? Moreover, for shareholders, are the parts worth more than the sum?

      My take is that they have some solid segments, but nothing that dominates. They are extremely weak in some areas that could be a problem in a few years compa

    • And yet, I recall the recent story about the engineer who lost his job and possibly his career because his daughter visited him at the office and took a naughty picture of a new iPhone. Seems like a somewhat evil prioritization of profits over people.

      Welcome to capitalism. Apple sells hype, the engineer gave the hype away for free, this interferes with Apple's core business model so they let him go. Nothing could be more capitalistic — capitalism being defined as capital controlling the means of production.

      I think smaller government must be predicated upon smaller companies. Soulless, huge, immoral, and immortal companies running amok in search of infinite profits without any control is one of the worst scenarios I can image.

      Once upon a time, you had to actually justify an application for a corporate charter. It should provide value to The People, or it should not be permitted to exist. You can do all the same stuff that you do with corporations with co-ops, though

      • by shanen ( 462549 )

        While I agree with you in some places, I think you're kind of misled on this "capitalism" thing. Next you'll be trying to convince me that "communism" still exists (or ever existed outside of Marx's dreams).

        I think the best description of what we have now is "corporate cancerism". I would even argue that cancerism is the natural outcome of attempting to reduce all value to the single dimension of profit.

    • And yet, I recall the recent story about the engineer who lost his job and possibly his career because he breached written and well understood company policy

      FTFY. If you think Apple is bad for *this* reason your priorities and understanding are seriously messed up.

      • by shanen ( 462549 )

        No, I know Apple is bad, even EVIL, to put money ahead of human beings. I think you are seriously messed up, but perhaps you can explain to me exactly why you "think" Apple needs another billion dollars of profit? Last I heard Apple was simply sitting on an obscene amount of cash in the bank.

        My preliminary theory is that you have delusions of getting a billion of your own and mostly you fantasize about what you would do to other people when you had the kind of power that comes with that kind of money. I cal

    • Idiots get fired (Score:4, Insightful)

      by sjbe ( 173966 ) on Friday November 03, 2017 @08:18AM (#55481777)

      And yet, I recall the recent story about the engineer who lost his job and possibly his career because his daughter visited him at the office and took a naughty picture of a new iPhone. Seems like a somewhat evil prioritization of profits over people.

      The engineer in question should have known that sharing that information was verboten. He almost certainly signed agreements to that effect. That engineer cut his own throat by disclosing trade secrets of his employer. ANY company in a similar position would have to do the same thing and that is the proper and responsible course of action. Otherwise they send a message that they don't really care about whether people disclose company secrets. We're not talking about some sort of toxic waste dump coverup here. We're talking about carelessly hurting the economic well being of the company and the people who depend on that company. He screwed up. He knows he screwed up. And he got fired for cause. You don't share secrets, even with family. He could easily have prevented the problem by not sharing the phone with his daughter who really is blameless. She was just an enthusiastic kid who got her hands on a new toy and behaved predictably like children do. That has nothing to do with prioritizing profits over people. Those profits actually support the livelihoods of many thousands of people and this idiot engineer needlessly endangered that.

  • by Anonymous Coward on Thursday November 02, 2017 @09:31PM (#55480245)

    Apple is in the business of selling hardware, not selling your data. That plus creating a premium experience translates to a device that people will pay a premium to get.

    • That plus creating a premium experience translates to they're were kind enough to lubed you up first.

    • Re: (Score:2, Informative)

      by thegarbz ( 1787294 )

      The only? Google won't sell your data either. It's their most valuable asset. They've perfected the business model of selling access to you while keeping your data treasured to themselves.

    • Software company (Score:5, Insightful)

      by sjbe ( 173966 ) on Friday November 03, 2017 @08:34AM (#55481841)

      Apple is in the business of selling hardware, not selling your data.

      While it is undeniable that Apple does make money selling hardware, they aren't really a hardware company. They are a software company [youtube.com] and this is something Steve Jobs understood a long time ago. They really make their money selling software. The hardware is simply the means by which they sell their software. The hardware on a Mac is in reality barely different from a Dell or HP computer. The iPhone hardware is barely different from numerous Android phones. Put Windows on a Mac or Android on an iPhone and customers would leave Apple faster than you can say "shareholder lawsuit". The hardware is what facilitates the sale but what people really are buying is the software and that is what they pay a premium for.

      Think of it this way. Companies keep the valuable parts of the business. Apple doesn't not manufacture hardware so hardware is obviously not the core of their business. They functions they kept in house are software development and hardware design. The hardware design is simply to facilitate selling the software by putting it in a pretty and well designed box.

      And at least so far you are right that Apple does appear to in general be responsible with customer data and privacy. So far... And the reason they can do that is that they haven't needed to get into the ad business to maintain their margins. It's actually one of the reasons I have an iPhone instead of Android. It's not that I think the Android system is bad (it's better in many ways) but Google develops Android specifically so that they can continue to make money with their core advertising business which does not and cannot respect my privacy and data. It's a built in conflict of interest that is not in my favor. I'm actually willing to pay Apple a more to avoid that issue. Your mileage may vary of course.

      That plus creating a premium experience translates to a device that people will pay a premium to get.

      Correct. And the basis of that experience is software. If Apple sold their software through others they would probably look a lot like Microsoft in a best case scenario. Instead they are a little more vertically integrated to differentiate their products because operating systems tends to be a winner take all sort of business. Had they taken Microsoft's playbook probably one or the other of them would have died years ago. Had they taken the approach of selling hardware with someone else's software they would be nothing more than another me-too vendor of PCs even in the best case scenario and their margins would be a LOT thinner.

      • Apple doesn't not manufacture hardware

        Are you high?

        Employing a Contract Manufacturer to do the soldering and assembly doesn't make you a "non-manufacturer" of your Hardware products.

        EVERYONE employs Contract Manufacturers. It's just a matter of economic efficiency, since the facilities and equipment are specialized and quite costly.

        • Are you high?

          Nope. Don't drink either.

          Employing a Contract Manufacturer to do the soldering and assembly doesn't make you a "non-manufacturer" of your Hardware products.

          Actually it does mean exactly that. Apple does not manufacture their products and has not for a long time. Therefore they are not a manufacturer by definition. Nothing wrong with that but you have to actually manufacture something to be called a manufacturer.

          EVERYONE employs Contract Manufacturers. It's just a matter of economic efficiency, since the facilities and equipment are specialized and quite costly.

          I am the GM for a (small) contract manufacturing company. I assure you I understand how it works better than you do. If you outsource 100% of your manufacturing then you are by definition not a manufacturer. Companies lik

          • Are you high?

            Nope. Don't drink either.

            Employing a Contract Manufacturer to do the soldering and assembly doesn't make you a "non-manufacturer" of your Hardware products.

            Actually it does mean exactly that. Apple does not manufacture their products and has not for a long time. Therefore they are not a manufacturer by definition. Nothing wrong with that but you have to actually manufacture something to be called a manufacturer.

            EVERYONE employs Contract Manufacturers. It's just a matter of economic efficiency, since the facilities and equipment are specialized and quite costly.

            I am the GM for a (small) contract manufacturing company. I assure you I understand how it works better than you do. If you outsource 100% of your manufacturing then you are by definition not a manufacturer. Companies like Dell and HP contract out some production but they also make a substantial amount of their products themselves. Apple currently makes near as makes no difference none of their hardware nor do the assemble hardware made by others. The do design a lot of it but designing a product does not make one a manufacturer.

            And I have worked for decades Designing industrial control products. The (also small) company I worked for did a lot of its own Manufacturing (including in house PCB design, board-stuffing (through-hole) and a Wavesolder line (again, for the through-hole stuff)), as well as enclosures (other than the injection molded parts) and final assembly. But, due to the equipment investment necessary for pick and place and IR reflow equipment, we also used CMs for our SMT designs. Therefore, I know EXACTLY what I am t

          • Actually it does mean exactly that. Apple does not manufacture their products and has not for a long time.

            Bullshit [irishexaminer.com]. If failing Dell and HP get to pretend to be computer manufacturers, so does Apple.

            “While Apple has changed the supply chain in many other factories and got out of manufacturing in many cases, it has always kept the Cork facility here so we’re the only Apple-owned manufacturing facility in the world,” senior director of manufacturing Paul Coburn explains.

            “There’s a huge history there and when they transitioned [to outsourcing manufacturing] I think they saw that to get rid of all manufacturing expertise from Cork would actually be a risk.”

            Instead, the Cork facility has flourished in the past decade as the core knowledge of its employees — many of whom are locals — grows in importance as outsourcing continues apace and new products are brought to market.

      • by tlhIngan ( 30335 )

        And at least so far you are right that Apple does appear to in general be responsible with customer data and privacy. So far... And the reason they can do that is that they haven't needed to get into the ad business to maintain their margins. It's actually one of the reasons I have an iPhone instead of Android. It's not that I think the Android system is bad (it's better in many ways) but Google develops Android specifically so that they can continue to make money with their core advertising business which

    • Apple is in the business of selling hardware, not selling your data. That plus creating a premium experience translates to a device that people will pay a premium to get.

      Precisely!

  • 46 million iPhones, That's a lot of drop test videos.
  • Re: (Score:2, Insightful)

    Comment removed based on user account deletion
  • I read an interesting comment on a business site: the success of the iPhoneX will be felt by other retailers this Q4 and upcoming Q1, more so than previous iPhones. Expectation is that many will say: “I just bought a $1000 phone, I will delay buying a new jeans trousers.”
    • Most people buy phones on contract which means a tiny bump in monthly payments, I really don't see this dragging down retail more than it already does for itself. If retail is down, I'd look a lot more solidly at Amazon than Apple.

    • by Isaac-Lew ( 623 )
      On a 24 month payment plan or lease, the monthly payment on a $1000 phone is $41.66, that's somewhat affordable. Also, some carriers have early upgrade plans where you can turn in the phone after a year & get the next model without penalty (T-Mobile's JUMP & Sprint's iPhone/Galaxy Forever are the 2 I know about). Who's dumb enough to pay full price upfront for a $1000 phone?
  • Slasdot goes crazy,
  • An extra 500,000 over expected sales of 46.6 million is 1% above target.

    The headline is hyperbolic in the extreme.

    • An extra 500,000 over expected sales of 46.6 million is 1% above target.

      The headline is hyperbolic in the extreme.

      Phew, thanks god iPhone sales were the only prediction anybody made. Imagine if TFA or even TFS had mentioned revenue and Mac sales 8% above expectations - how dumb would that make you look.

  • How I miss the good old days, where no one ever interpreted 1% as "crushing it"—unless it was a 1% uptick occurring in under 24 hours. Even by this standard, in any given issue of PC Magazine twenty different Taiwanese upstarts would be outed as crushing it since the last breathless thud.

    These days, The 1% is reliably crushing it, but that's a different matter.

One man's constant is another man's variable. -- A.J. Perlis

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