Main topic: Apple's Q3 earnings and performance in the smartphone market
Key points:
- iPhone revenue declined from $40.66 billion to $39.67 billion compared to the same quarter last year
- Services revenue increased from $19.6 billion to $21.2 billion, beating analyst expectations
- Apple saw growth in China with sales up 8% year-over-year
- CEO Tim Cook highlighted the company's focus on AI and machine learning, including generative AI
- Apple plans to release its Vision Pro headset, a spatial computing device, early next year.
- Apple's total revenue dropped for the third consecutive quarter, shrinking 1% year over year.
- iPhone, Mac, and iPad sales all saw declines of 2%, 7%, and 20% respectively.
- However, Apple's services business, which includes the App Store and subscription services, grew 8% to its highest level ever.
- Services accounted for over one fourth of Apple's revenue in the quarter, the highest proportion since at least 2020.
- The growth in services is good news for Apple's bottom line, as the gross profit margin from services is nearly double that from hardware products.
Main topic: Apple's financials in Q3 2023
Key points:
1. Apple's revenue from its Services segment reached an all-time high of $21.2 billion, growing 8% year-over-year.
2. iPhone, Mac, and iPad revenue declined compared to a year ago, with iPad sales experiencing the largest drop.
3. Overall, revenues dropped less than 2% year-over-year, while profits increased about 2% to $19.9 billion.
Investors quickly lost their optimism in August due to disappointing earnings reports, particularly from Apple, resulting in a downhill trend for the market.
This article mentions the stock of Apple (NASDAQ:AAPL). The author's suggestion is not explicitly stated, but they express concerns about the low dividend yield, modest dividend growth, and potential overvaluation of Apple's stock. The author also discusses Apple's strong brand, the possibility of an acquisition of Disney's assets, and the headwinds and risks facing the company. The author suggests that a recession or market correction could lead to a potential price drop and provide a good entry point for investors. However, they also acknowledge the potential for the stock to continue trending upwards, especially during the holiday season.
Apple and Nvidia are two Nasdaq-listed stocks that have the potential to lead your portfolio for years to come, with Apple's sustainable profits driven by their shift to a services-focused approach and Nvidia's dominance in the AI hardware market.
Apple stock rose more than 2% on Tuesday ahead of its Sept. 12 event where the company is expected to announce new products, including the iPhone 15 and new Apple watches.
The global smartphone market is expected to decline, but IDC predicts that Apple's iPhone market share will reach an all-time high due to trade-in deals, buy-now-pay-later schemes, and enticing features in their upcoming iPhone 15 Pro Max.
Apple's stock is on track to snap a seven-month winning streak, despite a 6.3% rally over the past two weeks, as concerns over declining smartphone demand continue to affect the technology behemoth.
Salesforce surpasses Apple as the top-performing stock in the Dow Jones Industrial Average and continues to gain momentum after its latest earnings report.
September has historically been the worst month for stocks, but this year may be different as the excitement around AI, cash on the sidelines, and Apple's new iPhone could potentially drive positive market performance.
The stock market sinks as a tech selloff occurs due to investors' fear of more Fed rate hikes, with Apple, Tesla, and Nvidia all experiencing significant declines.
Apple Inc. experienced a significant decline in its stock price after reports emerged that Chinese government agencies have banned the use of iPhones and other foreign-branded devices by their staff.
Apple stocks fell 3.6% after China reportedly banned officials from using or bringing iPhones and other foreign-branded devices into the office, signaling Beijing's push to reduce dependence on American technologies.
Apple shares fell during out of hours trading on Thursday, following reports that China has banned government employees from using iPhones, posing a potential threat to Apple's sales and global supply chain.
Apple shares fell over 2.6% as China plans to extend a ban on iPhone use to state-owned corporations, while Dutch Bros dropped 6% after announcing a public offering of $300 million in shares, and Dave & Buster's shares fell over 3% due to weaker-than-expected earnings.
Apple stock is experiencing a decline leading up to the release of the iPhone 15.
Apple's recent sell-off due to concerns about a Chinese crackdown on iPhone usage among government workers should not deter investors from the tech giant.
Shares of major Apple suppliers dropped following reports of China widening curbs on iPhone use by state employees, raising concerns about sales in one of Apple's biggest markets.
Apple shares stabilize after a recent loss following a Chinese crackdown on iPhone use, while Disney channels remain blacked out for Charter subscribers, and other notable stock updates are highlighted.
Bitcoin could decline by more than 60% if Apple's market cap continues to decline, according to crypto analyst Nicholas Merten. A plummeting Apple market cap would have a significant impact on Bitcoin and other equities.
The launch of the latest iPhones by Apple aims to boost consumers and investors amidst falling share prices caused by deteriorating international relations, with tensions between Beijing and Washington threatening sales in China, one of Apple's biggest markets.
Investors hoping for a surge in Apple's stock on iPhone launch days may be disappointed, as historical data shows that the stock usually falls on the day of the announcement and the release, but gains in the months following the release.
Stocks slump as Oracle and Apple experience losses, with the Nasdaq Composite having its first losing day in three, while Apple's new iPhone 15 and iPhone 15 Pro fail to boost investor interest in the company.
Summary: Apple announced the iPhone 15 and iPhone 15 Pro at its annual launch event, with the Pro model keeping the same price as last year's version, while the Nasdaq Composite suffered its first losing day in three, largely driven by a 13.5% drop in Oracle's shares.
Apple's highly anticipated iPhone 15 launch disappoints investors and Wall Street.
If you had bought a top-of-the-line iPhone every time Apple released a new model instead of buying Apple stock, you would have spent around $16,000 on iPhones and made a profit of approximately $131,000 if you had bought the stock instead.
Investor interest in AI stocks is starting to cool off, according to Vanda Research analysts, who have observed a decline in net purchases and news coverage of AI-related companies, such as Nvidia. However, they believe that this decline in retail demand is unlikely to significantly impact stock prices without active participation from institutional investors. Smaller AI-related companies, like C3.ai, are experiencing a selling trend, while IonQ, a quantum computing company, has been an exception with resilient demand and increasing short interest.
Arm stock is experiencing a second day of gains and is currently more popular than Apple.
The article does not mention any specific stock recommendations. However, it discusses Apple (NASDAQ:AAPL) extensively and highlights the author's positive view towards the company's valuation and growth prospects.
The author's core argument is that while Apple's growth has slowed, its elevated valuation is justified due to factors such as its superior competitive position, strong brand and connection with consumers, solid prospects for future growth, and strong financial position.
Key information and data mentioned in the article include:
- The Wall Street Journal reported that the Chinese government had banned iPhones for government employees, but the Chinese government later denied this report.
- If the ban had been true, analyst Dan Ives estimated it would be a hit of half a million iPhones, but he referred to it as "more bark than bite."
- Apple's growth has slowed, but its high valuation is justified due to its many advantages, including its competitive position and strong financials.
- Apple's valuation is less dependent on current earnings and more focused on long-term prospects.
- Apple's revenue is comparable to other massive companies, but it still has room for growth, especially in the high-margin services segment.
- Apple's dependence on China is both a risk and an advantage, as China is also dependent on Apple.
- The Chinese economy is facing challenges, and a cooperative relationship between the US and China would benefit Apple and the global economy.
- The author believes that Apple's strong management and adherence to secrecy and compartmentalization give it a unique edge.
- The author suggests that expectations for Apple may be too low if globalization is not receding as expected.
Microsoft's shares have outperformed Apple's as investors see better growth prospects and less China risk, making some analysts believe that Microsoft may overtake Apple as the world's highest-valued company.
UBS analyst David Vogt's data suggests that initial demand for Apple's iPhone 15 Pro models is softer compared to last year's models, contradicting reports of strong sales, which caused Apple stock to fall.
