Sunday, May 1, 2016

Apple's second-quarter earnings upcoming iPhone6s / SE sales

Apple's second-quarter earnings upcoming iPhone6s / SE sales 

Apple's second-quarter earnings upcoming iPhone6s / SE sales






Apple will be announced April 25 its deadline to the end of March this year, this fiscal year's second-quarter earnings. The world's attention to this last earnings call, I'm afraid because analysts said the iPhone will mark the first decline. So to grasp the current situation of Apple in the complicated data, we should be concerned about what some of the points it?

iPhone is everything
Apple's upcoming second-quarter earnings and sales concern .jpg iPhone6s SE
iPhone business accounted for nearly 70 percent of Apple's total revenue, so whenever this section in terms of the financial situation is critical for Apple, but also we need to focus on the main points. On this core business, Apple is facing a considerable challenge, but analysts have also been repeated verification iPhone sales in different markets and prices.

iPhone6 ​​and iPhone6 ​​Plus released in September 2014, and they live up to expectations, Apple has brought explosive sales growth, consumers for the new big screen design frenzy endless. As of the end of March 2015, iPhone's revenue grew 55%, while sales of the entire company level also increased by 27%.

To the upcoming earnings data comparison it will be quite difficult, and many analysts predict the iPhone will usher in its first decline. Apple's revenue is expected to be given 50 to 53 billion US dollars, while last year it was $ 58 billion. In any case, Wall Street analysts forecast the average data is $ 52 billion, so the two agreed.

Recently, consumers demand for tablet PCs and PC can be described as very bleak, so we do not expect to see some bright spots have emerged in these products. Apple will expand the market hopes placed on new products and services, such as the Apple the Pay , the Apple Music, the Watch the Apple, there is a new Apple TV. But even though they do is very important, after all, Apple needs these services to maintain a steady growth, but even when they are added together, these services and products for the entire Apple's financial results can only form a general impact.

If Apple wants to prove to investors that it is still able to bring to the market success of new products and services, attention fell contrast iPhone and other businesses, we will be able to see whether Apple has the ability to bring continued revenue growth.

Earnings guidance
Apple's upcoming second-quarter earnings and sales concern 1.jpg iPhone6s SE
The operation of the stock market is a forward-looking mechanism has, therefore investment decisions need to be based on the future potential of a business, not its past performance. Therefore, relevant data than those on a quarter financial results for the next quarter, Apple forecast actually much more important.

For a comparison of the third quarter of the year will be challenging, because Apple had expected iPhone revenue compared to last year will surge 59%. However, Apple in March 30, 2016 released the latest iPhone SE, which will likely continue to accelerate revenue growth.

iPhone SE of four inches smaller screen, its 3288 yuan price is quite competitive. In emerging markets, the competitive price is a very significant advantage. In the domestic market, for example, foreign analysts through observation, found that iPhone SE in the domestic retail selling fast, and soon after the shelves will be sold out. Whether it is China or India, these markets are still considerable room for improvement. On a quarter iPhone in China 18% increase, while in India it reached 48%. Therefore, it will certainly keep a close eye Apple's future performance in emerging markets.

Interestingly, Apple CEO Tim Cook noted that nearly 60% of iPhone users have not updated to iPhone 6 or iPhone 6s, then they become potential users of small-screen devices in a conference call, whereas iPhone SE access actual performance down also really curious.

Growth rate
Apple's upcoming second-quarter earnings and sales concern 2.jpg iPhone6s SE
Apple is already a mature company, and this company if you want to come in a surge in sales, it is very difficult. On the other hand, the more stable the more mature companies will have more excess cash flow in the form of dividends back to the ability of investors. Apple pointed out that all the information will be announced in the next earnings report new dividend increases.

Apple has been committed to an annual cycle to enhance investor dividends, but in the past three years, every time it will be announced in the second quarter earnings in dividends to rise. 2013,2014 and 2015 the rate of increase was 16%, 7% and 11%, relative, investors expect this year will be able to get about 10% of the bonus promotion.

Apple acquired cash than it needs to be more business to reinvest much, so a new round of share buybacks is entirely possible. The point is that the size of this bonus promotion investors will send an important signal that Apple is able to bring a steady cash flow growth throughout the year. The bigger the bonus rises, it gives investors confidence is stronger.
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