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Apple has good results

by on28 January 2015


Tame Apple Press beside itself

Apple reported some great results yesterday, but it is hard to make any sense from the press reports.

As usual, the Tame Apple Press has been on a full marketing drive making it difficult to actually tell what is real from wishful thinking.

For example, Reuters told us that Apple's year on $74 billion revenue was the biggest ever reported by a public company. The largest revenue in corporate history was Fannie Mae which made $84 billion in 2013, Apple has broken a record but it is a quarterly figure record of $18.04 billion. The last time it did so well was $13.10 billion it made during the same quarter in 2014.

The Tame Apple Press tells us that the increased sale are all due to the wonderful partnership it had in China with China Mobile. While it is true that the sales are up, 70 per cent in China in comparison to last year this is nothing like the level of sales that the Tame Apple Press had predicted behind the bamboo curtain. In fact it claimed that the deal would mean Apple would sell more phones in China than the 30 billion would sell in the US.

Don't get me wrong -- $16 billion in sales is not to be sneezed at, but when you had been told that sales in China would be more than the $30.6bn and you end up with $16 billion something has gone wrong. Things might actually get worse for Apple in China as that country slides into recession and cannot afford its products.

Other aspects that have not been glossed over are the concerns, expressed by Apple, about the strong dollar which could really damage the company's bottom line in the future. Some of this might be over stated. Most of Apple's cash is out of the country where it cannot be taxed, but it will still cause Jobs' Mob a major headache.
Apple also announced that its iWatch vapourware will finally hit the shops in April.

All up Apple's results are great and show that CEO Tim Cook is making all the right moves, but the company still has a number of weaknesses that the results will paper over. Firstly its tablets sales are falling, it has had no ideas and it is still getting a kicking from cheap and cheerful Android phones.

 

Last modified on 28 January 2015
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