Apple’s iPhone is an incredible moneymaking machine. At the same time, the iPhone is becoming less important to Apple’s total sales as the smartphone industry stalls globally. Last year, during the same quarter, iPhones sales were The smaller share of iPhone revenue indicates that Apple is getting more skilled at selling other hardware and software products to its installed base of million iPhone users. Part of the iPhone’s diminished importance on Apple’s balance sheet can be attributed to sales shrinkage. Apple has been emphasizing its services business as iPhone sales stall, and held an event in March to launch four new services, including two new video services and a credit card. Wedbush analyst Dan Ives estimated that Apple’s streaming services could sign up as many as million customers over the next three years.
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Apple is having a pretty good quarter. The company has announced its fourth-quarter earnings, showing earnings that beat Wall Street estimates, thanks largely to the heightened average selling price of the iPhone. While Apple sold about as many iPhones as it did in the fourth quarter of , the iPhones it did sell were more expensive, basically meaning that the company made far more than it did with the same number of units last year. The company sold Interestingly, Apple also announced that it would stop providing data related to the number of units it sold. Alongside the new iPhone series, Apple also took the wraps off of the new Apple Watch Series 4 , which has received excellent reviews since its release. Services is another segment that Apple is doing well in. Despite excellent financial results, there is some cause for concern. The rising prices of Apple devices really just offset slowing sales — so while Apple may have made more money than previous years in many segments, it did not sell quite as many devices. Because of that, by the time of this writing Apple shares had fallen 4 percent. The company recently took the wraps off of a new MacBook Air and Mac Mini, both of which were long overdue updates, and will likely perform well in the holiday season as the new iPhone and Apple Watch will likely do, too. Puma Smartwatch review: It looks sporty, but fails to perform 1 day ago. The best MacBook deals for January 1 day ago.
iPhones open the door for even more revenue for the iMaker.
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iPhones open the door for even more revenue for the iMaker.
With its emphasis on minimalist design and a simple user experience, the company has defined product categories like the tablet, the smartwatch, and of course, the smartphone. The iPhone is the device that made Apple one of the largest companies in the world and is responsible for most of Apple’s sales. But it’s not the only way Tim Cook and company make money. A full transcript follows the video. Narrator: Most hardware companies have a hard time making money on devices, but not Apple. But that’s not the only way Cupertino’s finest makes money.
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By Adrian Kingsley-Hughes for Hardware 2. Well, you can certainly pull numbers out of the air, but how meaningful or accurate they are is open for debate. The first problem with it is that you can’t just take the selling price, subtract the BOM and find out how much profit Apple makes from each sale. Another problem is that there isn’t a big catalog that we can look at to get the pricing for all of the components. Some items, such as memory and storage, are pretty universal and we can get a pretty good pricing for them but Apple is a high volume buyer, more on this in a moment , but even these pieces vary daily. Other components, especially bespoke stuff such as the A12 Bionic processor , we can make some educated guesses about, but that’s about it. We can’t forget that Apple also buys in huge volumes. Not only does that allow it to make deals to drive prices down, but it can stockpile certain components it knows it will need when the prices are lowest. As for more custom components, as volume and yields increase, prices will come down over time. What an iPhone costs to make in September of this year will likely be higher than what the same iPhone costs to make next year. So while it’s cool to get a number to play with, and fun to compare that to a number pulled out of the ether for last year’s iPhone, it’s important to keep in mind that only Apple really knows how much it costs to make an iPhone, and that figure changes hourly. The best way to figure out how much an iPhone costs to make is by looking at the company’s financial statements. Sure, those are not as cool or geeky as hardware teardowns, but we do get a clearer picture by looking at gross margin guidance.
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The company has also grown its wearables business such as the AirPods. Lam also told Tech Insider that Apple » has long used this product strategy to improve their overall blended gross margins on their iPhone line. But the money doesn’t stop there for Apple. It’s what I would tell anyone who asks for my advice about which iPhone to buy. In early , the company announced it had an installed base of 1. My Account. The 16 gigabyte iPhone issue is one I’m passionate about and have written about quite a few times. Your Practice. Want to expand your storage and put some of your photos on the cloud? As a result, Apple has been busy creating ancillary services and products that complement the iPhone. There are also marketing and advertising costs as well as the cost of sales, general, and administrative costs such as the corporate office. Want to download a productivity app?
Recently, iPhone sales have struggled as Apple battles longer upgrade cycles, but services growth has kept chugging. The 16 gigabyte iPhone issue is one I’m passionate about and have written about quite a few times. In earlythe company announced it had an installed base of 1. Popular Courses. From our culture to the economy, the small, handheld device has made a splash, changing the way we live, and that influence is likely to continue. Instead, components and materials are gathered from around the globe and sometimes even from direct competitors, such as Samsung. The services segment is twice as profitable as Apple’s core hardware business, and increasingly, it is going to become the focus for Apple. Your Money. Your Practice. The company makes very little of its own products. Want to download a productivity app? A full transcript follows the video. Tech Stocks Samsung vs.
Zac Hall. Just how much money did Apple make last quarter? Full press release after ooff break, and stick around for our earnings call live blog at the top of the hour:. Cupertino, California — July 31, — Apple today announced financial results for its fiscal third quarter ended June 30, The dividend is payable on August 16, to shareholders of record as of the close of business on August 13, These statements involve risks and uncertainties, and actual results may differ.
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The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates. All rights reserved. Apple and the Apple logo are trademarks of Apple Inc.
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