With traders able to drive Apple’s inventory to a brand new report high as we speak, it’s secure to say they’re fairly happy with the outcomes of the corporate’s earnings report yesterday.
The headlines are all about income development, iPhone gross sales, and expectations for the subsequent iPhone. However within the convention name with analysts yesterday, and the earnings launch, the corporate revealed some attention-grabbing nuggets for Apple watchers.
1. Apple Watch: Apple CEO Tim Prepare dinner mentioned Apple Watch gross sales grew 50 p.c within the quarter in comparison with the identical interval one yr in the past. He didn’t give the underlying unit gross sales. But it surely’s a good guess that the corporate is continuous to extend its lead because the world’s largest smartwatch vendor.
“It’s the #1 selling smart watch in the world by a very wide margin,” Prepare dinner mentioned. “Apple Watch is having a positive impact on people’s health and daily lives, and motivating them to sit less and move more.”
2. Apple TV: This product is a part of the identical “Other” class as Apple Watch. It additionally contains Beats merchandise, iPods, and Apple-branded and third-party equipment. Income on this class elevated 22 p.c for the quarter. So if Apple Watch gross sales jumped 50 p.c, it might comply with that different devices fell. Apple TV appears to be struggling a lot that even when prompted by an analyst, execs didn’t say a lot about it. By the best way, this class will seemingly get much more muddled when Apple begins promoting its HomePod later this yr.
three. AirPods: These would even be lumped into the “Other” class. Prepare dinner famous that there’s “incredible enthusiasm” for AirPods, with 98 p.c buyer satisfaction, primarily based on the Inventive Methods’ survey.
“We have increased production capacity for AirPods and are working very hard to get them to customers as quickly as we can, but we are still not able to meet the strong level of demand,” he mentioned.
Now, this product didn’t exist a yr in the past, so it additionally accounts for at the least some a part of the “Other” development, which reinforces the notion that legacy merchandise like Apple TV are struggling.
four. iPad: The pill ended a 13-quarter shedding streak by posting a 15 p.c improve in unit gross sales. However iPad revenues only elevated 2 p.c. So whereas a lot consideration has been given to issues just like the iPad Professional, the reality is that Apple turned issues round by promoting extra of the less-expensive variations.
5. “Giant” Autonomous Mission: The corporate remained circumspect when requested about plans on this space. However Prepare dinner did say: “In terms of autonomous systems, what we’ve said is that we are very focused on autonomous systems from a core technology point of view. We do have a large project going and are making a big investment in this. From our point of view, autonomy’s sort of the mother of all AI projects. And the autonomous systems can be used in a variety of ways, and a vehicle is only one.”
6. Hiring: The corporate has been underneath stress from President Trump for its outsourcing of producing. Trump turned up the warmth by saying that Prepare dinner had informed him Apple was going to construct three factories within the U.S. When requested about this on the decision, Prepare dinner didn’t reply straight however as an alternative highlighted the quite a few methods Apple contributes to the U.S. economic system.
He additionally pointed to Apple’s new manufacturing fund, which is getting used to assist different firms broaden numerous manufacturing capabilities. After which he appeared to trace that there was one thing else large coming later this yr concerning Apple’s U.S. employment.
“We have about two-thirds or so of our total employee base is in the U.S., despite only a third of our revenues being here, and we’ll have some things that we’ll say about that later in the year,” Prepare dinner mentioned.