-Gross margin if 38% across all businesses, 34.3% gross margin for iPhone, and 68% gross margin for services (Apple Pay, Apple Music, iCloud, …). Gross margin = The higher the percentage, the more the company retains on each dollar of sales, to service its other costs and debt obligations.
-19% growth in Services.
-iPhone sales dropped 15% from last year, leading to a sharp decline in revenue from iPhone.
-Apple’s total sales of $84.3 billion represent a year-over-year decline of 5 percent, making for the first annual revenue decline during a holiday season quarter since 2001.
-Apple cited China specifically as a reason why revenue was bad, and it reflects the reality that Apple is not doing well in emerging markets, especially India, because the iPhone is simply too expensive and people in these markets are unable or unwilling to pay that premium.
Apple is a safe bet, they have the resources, brand strength, and established credentials to make it work, and Buffett investing in them is a huge sign of confidence. And Apple’s numbers play out perfectly. But in all honesty, I used to own every Apple product, from iPods to iPhones to MacBooks to buying stuff off iTunes, and now I look around and I don’t anything Apple, save for an old iPhone that connects to wifi in case I’m texting someone who will judge that my texts come up green instead of iMessage blue. Point being, Apple has always been overpriced, but that was the cost of admission to a magical experience with any and all Apple products. But now it’s just overpriced with no magic, and if anything Apple’s competitors do a better job for a fraction of the price. I have a 360 HP laptop which can be both a laptop and a tablet with a stand. Apple’s MacBook has a butterfly keyboard, a touchbar that sounds gimmicky, and no touchscreen support let alone the ability to flip into a tablet. And that’s fine for most people, but for me it’s a step backward, and so while I love Apple’s financials, I personally do not like where Apple has decided to take their product line.