AAPL January 29

AAPL: 97.34

3.25
Stock Chart

AAPL January 27

AAPL: 93.42

-6.57
Stock Chart

After literally years of analysts claiming that we’ve reached ‘peak iPhone’ – that Apple’s year-on-year growth had gone as far as it could go – that day has finally arrived. iPhone sales last quarter were essentially flat (up just 0.4% year-on-year), and the company yesterday forecast that this quarter will see its first ever year-on-year decline in revenue since 2003.

If Apple hits the midpoint of its projected revenue for the current quarter, it will suffer a year-on-year fall in income of 11%. For the first time in 13 years, the ‘Apple is doomed’ merchants can cite real-life numbers as support for their position.

The reality, of course, is far more nuanced. There are some very specific reasons why the current quarter will be such a tough one, and why ‘peak iPhone’ is likely to be temporary, and I’ll get to those in a moment. But there’s also a bigger picture that suggests that Apple may have to be willing to think the unthinkable when it comes to the huge margins it has been able to enjoy to date …

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AAPL January 26

AAPL: 99.99

0.55
Stock Chart

It’s earnings day for Apple and the company has just reported their official numbers for revenue, profit, and products sold during the holiday quarter. Remember that this quarter includes the bulk of iPhone 6s and 6s Plus sales, all iPad Pro and related accessory sales, Apple TV 4 sales, plus traffic from the busy holiday shopping season.

With that in mind, Apple reported $75.9b in revenue, $18.4b in profit, 74.8m iPhones sold, 16.1m iPads sold, and 5.3m Macs sold. Although the October through December period was probably a stacked quarter for Apple Watches sales, the company doesn’t break out category sales for that product for “competitive” reasons.

That compares to $51.5 billion in revenue, $11.1 billion in profit, 48m iPhones, 9.8m iPads, and 5.7m Macs reported in the previous quarter. During the same holiday quarter a year prior, Apple reported $74.6b in revenue, $18 billion in profit, 74.4m iPhones, 21.4m iPads, and 5.5m Macs for comparison. Analysts were predicting around $76.6b in revenue, 75m iPhones, 17.3m iPads, and 5.8m Macs.

Tim Cook had this to say:

“Our team delivered Apple’s biggest quarter ever, thanks to the world’s most innovative products and all-time record sales of iPhone, Apple Watch and Apple TV,” said Tim Cook, Apple’s CEO. “The growth of our Services business accelerated during the quarter to produce record results, and our installed base recently crossed a major milestone of one billion active devices.”

Full press release after the break, and stick around for our earnings call live blog at the top of the hour:

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9to5toys 

AAPL January 15

AAPL: 97.13

-2.39
Stock Chart

With a recent European Commission ruling making it look more likely than ever that Apple’s tax arrangements in Ireland will be declared illegal, Bloomberg has been doing the sums on how much the company may owe in back tax. The total? More than $8 billion.

Apple funnels all its European revenue through Ireland, where a special agreement with the Irish government means that it pays just 2.5% tax instead of the normal 12.5%. A long-running European Commission investigation into the legality of this arrangement was recently extended and expanded its scope.

Assuming the agreement is ruled to be illegal, it would be the Irish government – and not Apple – who broke the law, but Apple would still have to pay the difference between the tax it actually paid and the full amount that would have been due without the deal. The company warned shareholders last year that it may have to pay ‘material’ back taxes, but the figure calculated by Bloomberg is much larger than earlier estimates …

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AAPL January 8

AAPL: 96.96

0.51
Stock Chart

Apple shares yesterday closed below $100 for the first time in 15 months, the WSJ noting that the value of the company has dropped by $100B in a little over a month, losing 7% this week alone.

The Cupertino company’s 4.2% drop on the day was greater than the overall market’s slide and the 3% slump in the Nasdaq Composite, which closed down 10% from its May peak. Since early December, Apple has shed $100 billion in market value.

The slide is being attributed to two factors: one (semi-)factual, one speculative …

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