No one bought an iPhone? Apple earnings report face analyst

Two interesting things have happened recently. First, investment banks and analysts from Wall Street sang Apple, Apple's stock price plummeted, and the market value evaporated more than 60 billion US dollars; then Apple announced Q2 quarterly earnings report, and produced the best score ever, face analyst Then the stock price rose. What is the secret of Apple’s second-quarter earnings report?

In Apple's Q2 earnings report, several pieces of information are very interesting.

iPhone still sells iPad and continues to rise

Apple's total revenue in the second quarter was 61.137 billion US dollars, an increase of 16%; net profit was 13.822 billion US dollars, an increase of 25%. The report shows that Apple's iPhone series is still the most important source of revenue, contributing $38.032 billion in revenue, up 14% year-on-year, and accounting for 62.2% of total revenue in the second quarter.

No one bought an iPhone? Apple earnings report face analyst

Apple iPhoneX

It's worth noting that although the iPhone sold well, Apple did not disclose the iPhoneX's sales, although Cook stressed that iPhoneX is Apple's most popular mobile phone in the Chinese market. However, the average selling price of the iPhone is lower than that of the Q1, indicating that the iPhone with lower prices has sold more than the expensive iPhoneX.

After reading the iPhone, there is also an iPad product line that everyone is concerned about. As we all know, the Apple iPad has been falling for several consecutive quarters in the early days. In the second quarter of this year, Apple sold a total of 9.113 million iPads, compared with the same period last year. The growth was 2%, while the revenue from the 9.7-inch iPad was $4.113 billion, which was also 6% higher than the same period last year.

No one bought an iPhone? Apple earnings report face analyst

New iPad

This is also due to the higher cost performance of Apple's new iPad, especially in the Apple launch this spring, the 9.7-inch iPad released for the education field, you can use ApplePencil, you can also use the third-party Logitech pen. The special offer for the education sector also makes the iPad extremely cost-effective.

After years of falling iPads, Apple finally found some hope on this product line.

Great purchasing power in Greater China

Apple's Q2 Greater China sales increased 21% year-on-year, and the iPhoneX played a significant role. Cook also said that iPhoneX has been one of the best-selling mobile phones in China in the past quarter. It seems that there are still many people who say no, but the body is very honest to buy the iPhoneX.

The revenue growth of all five major regions of Apple grew by +22% in Japan, +21% in Greater China, +17% in the Americas, +9% in Europe, and +4% in other parts of the Asia Pacific region. It can be seen that the Japanese market and the Greater China market have provided considerable assistance to Apple's sales.

Apple Q2 income in various regions

Especially in the downturn of the mobile phone market, it is not easy for Apple to grow against the trend. iPhoneX plays a very important role in stimulating consumption. In particular, the addition of full screens stimulates the user's eye and improves the user's desire to purchase.

Although the hardware is very profitable, Apple wants to make money from software.

Needless to say, the iPhone is Apple's most profitable hardware device, but Apple's software service has surpassed other hardware revenues in Q2, ranking second in Apple's revenue source.

No one bought an iPhone? Apple earnings report face analyst

It can be seen that software services have become more and more popular in Apple's revenue over the years and continue to grow, thanks to Apple's efforts in software services and the creation of a good ecosystem over the years. The software services category includes digital content and services, including AppleCare, ApplePay, iTunes, AppStore, AppleMusic and iCloud.

No one bought an iPhone? Apple earnings report face analyst

ApplePay supports bus card business in Beijing and Shanghai

Relying on Apple's 1 billion iOS users and 100 million Mac users, the business has become the second fastest growing business in Apple's revenue. Previously, Cook promoted ApplePay-related business, especially mentioning the support of transportation cards in China. The new features promoted the upgrade of iOS systems for old users and increased the market share of ApplePay.

And Apple has also started a new round of advertising and free trials for AppleMusic. This also makes more and more consumers start using AppleMusic. However, its localization changes to the Chinese region are not enough. With the increasing awareness of copyright, I believe that AppleMusic has great growth potential.

The data is very good, but the inventory crisis cannot be underestimated.

Although the data of the entire Q2 financial report is very good, but the US financial website ZeroHedge pointed out that Apple's inventory in the Q2 quarter increased significantly. According to TylerDurden, the earnings report shows that Apple's performance is not bad, but Apple's inventory soared 164%, according to which, it can be speculated that Apple has a large number of unsold iPhoneX in the warehouse.

No one bought an iPhone? Apple earnings report face analyst

Apple stocks high

The main reason for the high inventory is that iPhone sales are lower than expected. And Apple wants to quickly digest these stocks, they have to use the price cuts, after all, the price of seven or eight thousand mobile phones is not so easy to sell.

According to the 9to5Mac report, supply chain sources broke the news that Apple is negotiating with Samsung, hoping that Samsung can reduce the price of OLED screens made for this year's iPhone. Because OLED panels account for about one-third of the total iPhoneX production costs, if Apple can reduce the cost of iPhoneX, it can solve the problem of high inventory.

The mobile phone market is not arrogant.

Reduce costs, presumably this is one of the problems Apple wants to solve this year's new iPhone. It is reported that in addition to the introduction of two large and small OLED screen iPhones, Apple will also launch a cheaper LCD screen iPhone, and will join the highly localized dual card dual standby, if the rumors are true, I believe Apple will More competitive in the domestic market.

From the perspective of the 2018Q1 domestic mobile phone market, Apple’s share has been squeezed to fifth. The first four were respectively occupied by Chinese manufacturers Huawei, OPPO, vivo and Xiaomi. Although the growth rate of most smartphones in the Chinese market is slowing down, its shipments have not completely declined. Apple has to continue to pay attention to the performance of the Chinese market.

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