You buy and use Apple gear, right? So you should be concerned about the health of the company. After all, who wants to buy products from a company that quickly discontinues them? You know. Like Google. And Samsung.
Why then, do we read so many headlines about trouble for Apple when it should be clear from examining Apple’s financials and quarterly performance that there is nothing wrong in Cupertino?
Here’s the perfect example. Over the past few years Apple has been criticized because the iPhone represented too much of the company’s revenue and profits; at one point almost 70-percent. Even though iPad, Mac, and Services were highly profitable, the critical meme was obvious. Apple was not diversified enough.
Where is the reality? Apple’s most recent quarter of financials was yet another record. How so? Was there a gigantic leap in iPhone sales? Nope. Apple continued to grow revenue despite the general malaise in the smartphone industry– every manufacturer’s sales are down because smartphones have matured and are not exciting enough to upgrade every year or two.
Well, iPad sales are up. Mac sales are up. Services sales continue to show with growth so good that revenue is higher in the services category than Apple was as a whole company back in 2009.
Wearables is the new darling revenue stream– think Apple Watch, AirPods, Beats headphones, et al– and that managed to top iPad revenue and come close to the Mac’s revenue. Estimates put AirPod revenue alone at $8-billion. Don Reisinger:
If the $8 billion figure for AirPods revenue is accurate, that business alone would rank No. 384 in the Fortune 500, just ahead of Foot Locker, Motorola, and chipmaker AMD.
Meanwhile, more bad news for Apple. How so?
iPhone revenue is down to a mere 48-percent of all company revenue, and despite a record quarter of financials, that means Apple has another problem.
I know. This is getting crazy. Apple was criticized for not diversifying when iPhone revenue made up almost 70-percent of the company, and even with a record-setting performance, one where all other products increased revenue to nearly record levels, the company is criticized yet again for not performing the way Wall Street
analysts charlatans seemingly amateur market watchers and critics prefer.
That is why Apple’s good businesses are always so bad. Critics keep moving the goal posts after each quarter, then changing the score.