The iMore show brings you everything you need to know about the week in iPhone, iPad, Mac, and Apple! On this episode we present a podcast in two parts: Serenity, Michael, Daniel, and Rene on Apple earnings, and then Georgia, Mikah, Serenity, and Rene on Talkshow, Facebook Live, social fatigue, and Apple Watch one year later. Listen along!
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Show notes
- Apple earnings
- Facebook Live
- Talkshow is texting in public and more: We take a first look and interview the creator!
- Apple Watch review: One year later
- Twitter and Facebook want publishers and brands to stop promoting their Snapchat accounts
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Reader comments
iMore show 507: DO_oMED
So it's decided, Apple doesn't need to adjust at all.
Everything is fine. Just let sales decline double digit forever. It will never get to zero that way.
That wasn't my take away. More that, since replacing the iPhone business doesn't seem possible — what else of that magnitude is there? — Apple needs to have a variety of smaller-yet-still enormous businesses like iPad, Mac, Watch, App Store, ramping up as iPhone levels off.
What option(s) would you prefer?
Your podcast would be more informative if at least one person on the panel would not belittle the market for worrying about Apple's future. I will admit I was so disgusted at how bad of homers you were that stopped listening and deleted it after 20 minutes. It didn't help that one of your podcasters said Amazon doesn't make money. That is simply false and misstatements like that hurt your integrity. Amazon made a profit of half a billion dollars last quarter. Granted it is a fraction of Apple's but please don't continue to use that outdated trope. And why did that stock go up $70 after hours? Because investors are bullish in their future and think, unlike Apple, that the best is ahead of them.
My 264 shares of Apple are worth $10,000 less (even though you spent almost that much on Watch bands) than it was worth earlier in the year. I have the right to be angry that my company's answer to a swoon in sales is to release a rose gold MacBook.
Sure they have plenty of runway with 200 billion in the bank (albeit most of it overseas where it can't get to it). As a retired air traffic controller I assure that airplanes run off of 2 mile long runways sometimes.
The Titanic was looking pretty good when it left Southampton. "Full speed ahead".
Oh and as far as options go that is what terrifies me. I don't know that they have any good options. That is why the stock is being punished. I don't know what can replace those lost phone sales. Certainly not Apple Watch 2 and Apple TV and neither will a car. Tesla is losing money on every car right now.
They're not going to replace those iphone sales. You should have understood this earlier and sold your Apple stock. BTW...are you really seeking financial advice from folks with no experience/expertise? The podcast is for entertainment only. Don't take it as anything more than that.
"My 264 shares of Apple are worth $10,000 less (even though you spent almost that much on Watch bands) than it was worth earlier in the year. "
I'm going to call BS on this one. It's just waaaay too convenient for you to have the EXACT number of shares to have an exact 10k "loss" in the last 365 days. You only made up that number to make your convoluted comment about René's Apple Watch bands. More importantly, no sane person would score their investment based on the 52-week highs and lows for a stock. My guess is that you own no Apple stock at all.
Your "runway" comment is also a fail. It presumes that APPLE isn't continuing to make profit -- "extend the runway" (what a competent air traffic controller might say).
If you're so **** terrified of the company, why would you own any of its stock at all? Your claims of owning APPL stock are doubtful. Drop the pretense, dude. We're not buying.
Sorry it is actually 264.277 shares (I reinvest dividends that is the reason for fractions).
Fifty two week high $132.97, current price $93.64. A loss of $10,394.01.
Luckily I didn't buy at the high and over the years (while Apple was thriving) I have bought and sold and made more than that. Current loss on these shares is $7,261.67.
I am terrified that they won't find the next "it" product. Luckily they do make money and they do pay a healthy dividend that I believe they will continue to grow. Since I do not need this money anytime soon I am going to let my dividend buy more shares at these deflated levels.
Took a screenshot and put it in Dropbox if you want to take a look.
https://dl.dropboxusercontent.com/u/6877712/apple%20shares.png
Here is a better screen grab, shows my Amazon profit. It is subsidizing my dog of Apple stock. Notice how Amazon is near 52 week high and Apple is near 52 week low?
Must be sad for a fanboy.
https://dl.dropboxusercontent.com/u/6877712/APPLE%20VS%20AMNZ.png
Strange how you include your dividend-reinvested shares in your declared paper loss. If you had a stock like Amazon (which no dividends), you wouldn't have had that "problem". An honest report would exclude those dividends. If you think that Apple is the Titanic, you should immediately drop those shares -- or perhaps drop them right after you get your next dividend payments from the company.
And, BTW, some static statement is still photoshoppable. Providing an image doesn't prove a thing. Showing an unedited YouTube video logging into your account and displaying the balances *might* be credible, but this is not. Or you could just provide the credentials for your [claimed] investment account, and we could actually verify your claim. :)
The only point of making the $10,000 comment was to complain about René's Apple watch purchases. We're still not buying.
You also failed to explain your "runway" comment. Dude, that term applies to companies that are starting up or not making money. Apple is making gobs of money. "Extend the runway" would be what a competent air traffic controller (or ex-controller) might say. Your posting does not pass the smell test. Again.
You must think it is harder than it is to own Apple stock than it is.
Let me just send you my log in credentials for Fidelity. Good God!
I mean for less than $100 (including commission) you can buy a share yourself.
I would have gotten away with my ruse if it wasn't for you meddling kids.
Runway analogy explained. A lot of their money is overseas and tough to get at. They don't have 200 billion available. At 35% tax rate they have 130 billion to spend.
They could, at a 20% decrease in quarterly sales, eventually chip away at that.
You can't always extend a runway (think Boston Logan, surrounded by water and houses). You have a 20% decrease in sales a few years in a row and the end of that runway is starting to get pretty close. Sucks getting close to the end of the runway and you still aren't at V1 speed. (you can google that).
Apple will probably trade in a narrow range for the next year. The people saying it is doomed are just as idiotic as the fanboys that say all is well. The truth, as usual, is somewhere in between.
I didn't complain about the band purchases, it was a joke. Since Apple sends me $603.55 a year in dividends (I promise) I am thrilled that he is addicted to them. I just wish more people were.
My original post was for the four homers in the podcast that simply cannot say something bad about Apple. It's like watching Fox News during the Bush administration.
And it appears you are the same as them.
You don't have to be like a doting Mother. It's OK if they aren't perfect.
Definition of runway: "The amount of time until YOUR STARTUP goes out of business, assuming your current income and expenses stay constant. Typically calculated by dividing the current cash position by the current monthly burn rate."
1. Apple isn't a startup. It is a publicly-traded company with solid financials and a sane P/E ratio of 10.59.
2. Income has and continues to exceed expenses -- by a large margin, and even in the US. Comparing AAPL's "runway" to Boston Logan is a categorical FAIL. Unlike Logan, AAPL's "runway" continues to increase by large bounds every quarter.
Nobody ever said it was difficult to buy AAPL stock. My point is that your $10,000 argument is gratuitous and the "statement" could have been photoshopped. And there's a third FAIL in your argument: you include shares that you've accrued through dividends in your "loss". If you had Amazon stock instead, you wouldn't have the increased "loss" generated from these dividends.
Your argument has run out of runway, and you crashed into Boston Harbor. Remains of your plane were found in Cape Cod. Congratulations. https://en.wikipedia.org/wiki/World_Airways_Flight_30
Wow well said !!! Your comment was better than four Apple apologists going on for an hour or so.
It is frustrating that Rene does this. He explains why sales are stagnant like that makes it OK. They went to Verizon, check, they went to China, check. He thinks that is a good explanation. It is, it is a good explanation for why the stock is tanking. Because they have run out of room to goose sales. They were lucky that they had the iPhone to take over for the iPod. They may not be as lucky this time.
Revamp and slightly open IOs. It is incredibly stale at this point.
The iTunes activity window (OS X 10.11.2) failed to display the emoticon-rich title of this podcast episode. The main iTunes window was OK. That little activity window is useful, but it has consistently behaved with a lack of polish (apple-polish or otherwise). I tried to enter the apple emoticons from the episode title in my comment here, and iMore black-holed the comment.
My conclusions: APPL is doomed, and iMore is doomed, too. Heading for the shelter now...
I think the iPhone will Apple and iPhone will come come back from this but obviously not at the previous record iPhone levels obviously and like Rene said Apple needs to ramp up its Mac and iPad business along with the Apple Watch, which will definitely get better with the second generation.
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Yeah face it iPeople. iPhone sales are on the decline and it'll hurt Apple badly.
You got locked out with your fancy iPhone lock?, stick with the old fashioned type, MANUALLY!
Kudos to Daniel Bader for providing objective, sober, and thoughtful comments on Apple's financials. Dan sounded like he could be on NPR or one of the Sunday talk shows. Keep up the good work, Dan.