Algokid

AAPL : Good and Bad news , Earning Preview

Long
NASDAQ:AAPL   Apple Inc
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8
For the first quarter of 2015, Apple announced revenue of $74.6 billion and net quarterly profit of $18 billion, on 74.5 million iPhone sales, 5.5 million Mac sales, and 21.4 million iPad sales. This was by far the best corporate earning in history. Apple will announce earning for the quarter ending March 31st, on April 27th. The overall result should be positive , but expect some bad news about one product. First the the good news

Good News

- iPhone 6 continues to gain market share in major markets( except Japan for some reason...).
- Strong sales of the iPhone will continue in 2015, as more higher end android users are switching to iOS.
- AAPL to add ~ $41 Billions in iPhone Revenue for quarter ending in March 2015, which represent approximately 61 million iPhones .
- 54 % growth from Q1 2014.

Bad news

- iPad to post the biggest sales decline in 2015
- Sales of the iPad will drop by ~ 30 % ( year over year)
- From KGI Securities :
" More specifically, iPads will see a 52.7% QoQ in Q1 2015 with sales of 10.1 million iPads and a another 30-40% drop in Q2 2015 with 7.8 million units.”
- AAPL is planning the launch of a 12.9 inch iPad later this year , but this will not help the decline in shipment of iPads

Extra

- First day pre - order of the Apple watch were almost at 1 million units
- Pre -orders for the watch will top 2.3 million unit according to KGI analyst Ming-Chi Kuo
- 85 % of the pre -order will account for the AppleSport Watch ( Entry level)
- 15 % for the Apple Watch ( Mid level)
- <1% for the high end version.
- Apple watch becomes the most successful product launch in Apple history .
- numbers for the watch wont be included in Monday earning call

Conclusion

Buy!!!

Cheers

Algo

Sources :

- Bloomberg
- Reuters
-9to5mac.com.

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Comments

definitely worth reading! Cheers!
+1 Reply
Great post. tx
+1 Reply
Thanks for the feeback YaKa :)
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