iPhone 7 may look more like iPhone 4 than 6

23 Jul 2015 | Author: | No comments yet »

Apple Watch may have sold up to 2.5m units, analysts estimate.

Only Apple (AAPL) can post sales and profits up more than 33% year-on-year and still disappoint investors. Apple may not be revealing exactly how many watches its has sold in the last quarter, but analysts at research firm Juniper have been crunching the numbers and come up with an estimate of up to 2.5 million.Apple’s profit increased 38 percent to $10.7 billion compared to last year, and its revenue surged 33 percent to $49.6 billion, the company announced on Tuesday. “In the third quarter our year-over-year growth rate accelerated from the first half of fiscal 2015, with revenue up 33 percent and earnings per share up 45 percent,” Apple’s CFO Luca Maestri explained. “We generated very strong operating cash flow of $15 billion, and we returned over $13 billion to shareholders through our capital return program.” “We had an amazing quarter, with iPhone revenue up 59 percent over last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch,” said Tim Cook, Apple’s CEO in a statement. The company said the Apple Watch could have brought in as much as $1 billion in revenue for the technology company over the three month period, and expects sales to reach more than 6 million by the end of the year.

If capturing a remarkable 92% of global smartphone profits and accumulating $200 billion in cash reserves doesn’t prove the Apple ecosystem is working, I don’t know what does. The Wall Street Journal wrote “Apple iPhone Sales, Up 35%, Disappoint Investors,” while The New York Times headline read “Apple Profit Up 38%, but iPhone Sales Disappoint Wall Street.” The sudden fall stems from high expectations for Apple. Strategy Analytics said on Wednesday that the Apple sold 4 million devices in the second quarter of 2015, giving it a 75 percent share of the smartwatch market. Juniper based its figures on statements from the company’s executives, including chief executive Tim Cook who said “It would not be an inaccurate thing to look at the sequential revenue, the year-over-year change and assume that was the total watch revenue”.

The company forecast revenue of $49 billion to $51 billion, missing analysts’ average estimate of $51.13 billion, according to a consensus estimate from Thomson Reuters. Until the Watch launched, revenue in this sector was declining at a rate of about $200 million per quarter, as sales of iPads and other accessories declined. He also the Watch sold more than the first iPhone or the iPad in a comparable period; the first iPad sold 2 million in 60 days. “However, despite buyers being satisfied with the device, we continue to see that the product is running out of steam. To put that in perspective, Apple sold 1 million iPhones in its first 74 days and 3 million iPads during its first 80 days, so Cook’s statement that “sell-through was higher than the comparable launch periods” for both the iPhone and iPad on Tuesday’s earnings call is credible. Mr O’Reilly, best known for being the man behind the Dundrum Town Centre, appeared before the Oireachtas Inquiry into the Banking Crisis this evening.

Many early reviewers of Apple’s latest flagship device have written public breakup letters to their watches because they believe it doesn’t offer any life-changing features. Mr O’Reilly told the inquiry he had personal and corporate loans totalling approximately €2 billion from the guaranteed banks in September 2008 and that he believed all of this money would be repaid. And according to Re/Code, a report that Watch sales are decelerating that was widely picked up by the tech media failed to take all sales channels into account.

It has terrible battery life that lasts just 18 hours, notifications have a three-second delay from the phone, and the fitness tracker is weak compared to other devices. Mr O’Reilly, the founder of the Castlethorn group, of which he is one of three shareholders, and of Chartered Land, which he owns, said the groups’ loans were moved to Nama in 2010 and his businesses worked hard with the agency to maximise the value of the assets.

He also had a hand in the Pavilions Shopping Centre in Swords, as well as the Bord Gáis Energy Theatre and its adjoining office blocks in Dublin’s docklands. And while the smartwatch category is just getting started, IHS expects Apple to exit 2015 with 56% market share for the year with Samsung, LG, Pebble, Motorola and dozens of others fighting over what’s left. He was one of the biggest borrowers whose loans moved in the first wave of transfers to State assets agency Nama, after it was set up in the wake of the financial crisis. When he gave evidence in the trial of three former Anglo Irish Bank executives last year, he described himself as a “developer, builder” and when asked if he had been a billionaire in 2008 he answered that it was “hard to tell”. Believe it or not, CNET said Apple’s first smartphone didn’t live up to the hype, recommended that folks wait for the sequel and gave it just 3.5 out of 5 stars.

On the flip side, reviewers showered Apple’s initial smartwatch with praise, calling it “the best experience of any smartwatch tested,” “the world’s best smartwatch” and “light-years better than any of the feeble, clunky efforts that have come before it.” And after wearing it for a month, the venerable Walt Mossberg likened it to the first version of the iPhone, gave it a thumbs up and called it “a very good product – with a chance to be great.” If Apple Watch is killing it out of the gate, the question remains, why is Apple breaking from its tradition of sharing early sell-through numbers? While a hallmark of Apple is its laser-like focus on very few products – and it’s principally an iPhone company – it’s got a lot more going on than it did back in the day. There are new platforms like CarPlay, HomeKit and HealthKit and new services such as Apple Pay, Apple Music and the long-awaited streaming TV service. If this is Apple’s way of toning down the hype until it comes into its own as a product deserving of the limelight, I think that’s actually a fairly sensible strategy, assuming it doesn’t dampen the enthusiasm of third-party app developers. If the watch just gives users another reason to remain in the fold or iSwitch from Droid to iOS, I’d call that “mission accomplished.” Steve Tobak is a management consultant, columnist, former senior executive and author of the upcoming book, “Real Leaders Don’t Follow: Being Extraordinary in the Age of the Entrepreneur.” Contact Tobak.

However, with the new update, developers will be able to use the software development kit to build apps that have access to the watch hardware: the accelerometer, microphone, speaker, force touch, video, heart rate monitor and the digital crown. The Activity app currently only keeps track of calories burned, exercise time and also constantly bugs the user to stand up for a minute every hour (which I’ve ignore multiple times because of my thrall to my office desk). I really look forward to seeing other apps that will let me unlock my car from my wrist, play videos on apps like Vine and even control smart appliances at home.

Just like the iPod and iPhone, the first generations were weak and were only admired by Apple devotees and early adopters, but now they are high-demand products that people claim they can’t live without.

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