Apple returns to growth as iPad sales boost Q3 2017 earnings

Apple has experienced the first iPad sales increase in 14 quarters

Comments

  • Dimitri

    That’s because the pricing of the iPhone is over $1250 per device ( 128GB / 256GB iPhone 7 Plus). Their devices cost less then $300 to make. Also the iPad sales are up because schools are buying iPads and also so are some other places. You also have to count the iPad sales which are done under the carriers with financing on them.

    In the end I see them going downwards in a couple of years like every company does. They can stay up on top and make money for so long until they fall. Happened to many companies before and now

    • ciderrules

      That’s what people said for the last few years. Hasn’t happened yet and not likely to. They have such a huge installed customer base they can make a fortune every year just selling to upgraders (even people who keep their devices for 3 years).

      And their devices DO NOT cost less than $300 to make. If that were true then their profit on iPhones alone would have been over $17 billion this past quarter (their net profit for the entire company was only $8.8 billion).

    • Dimitri

      In the end all companies falls. Apple will fall one day and everyone will see it. That’s all I am saying.

      Also go check the build costs for a iPhone. U will see it. Maybe the iPhone 7 Plus costs $400 to built but that’s the highest. Unless I am seeing wring.

    • Mr Dog

      They are making 30% – 40% margins on their iPhones. That is including component cost, manufacturing, R&D etc but likely not including other operational cost such as administrative cost etc.

      The reason they are actually making so much money is because of the MASSIVE amount of iPhones they sell. They are not making that much more than say Samsung per phone.

    • thereasoner

      Cost to build an iPhone 7 has been reported at $220 vs $300 for the Galaxy S8.

    • BMWTech

      Actual numbers from Apple filings prove otherwise.

    • Mawhayden

      Oh it’s that sour grapes guy blowing smoke again, his predictions doesn’t come so he still stays”The end is near”….go back to your Trump propaganda Web sites…

    • Dimitri

      You are drunk. Go back to drinking and stay off websites which have nothing to do with u or comments that aren’t about u. Take care!

    • Mawhayden

      Your just a little B, too bad you always hiding behind electronic walls.

    • Dimitri

      That’s cute. Have a great day!

    • Mr Dog

      To be fair, your predicting a company’s doom based on your feeling.

      People like you have been calling for Apple’s doom for the last 5 years.

    • Dimitri

      No not really. Again all companies fail at one point. Unless you are a teenager which hasn’t really paid attention to the markets of companies, then you wouldn’t know..

      Its based on reality not on so called ” feelings”.

    • Mr Dog

      lol. Yes, companies that fail to adapt and innovate fall.

      They don’t just fall because history says so.

    • Dimitri

      Sooner or later Samsung, Apple and the rest will fail as innovation will go to the point that they won’t have anything to innovate.

    • thereasoner

      They have lots of room to maneuver yet. They employed a similar strategy to halt a string of quarterly year over year sales declines for the iPhone, albeit barely. They are devaluing the brand by making cheaper midrange models, relaunching old models and through various BOGO and free with trade in deals. The refurbished models had already put iPhones in reach of more people but now almost anyone can have an iPhone if they really wanted one.

      While this effectively devalues the brand and ends the “you can’t afford one” nonsense from fanboys the trade off for Apple is a boost in sales. They can continue this way for years to come because, as you’ve mentioned, they have a ton of wiggle room between sale prices and the actual cheaper than average cost to build.

    • Dimitri

      Oh i agree but going above the $1,500 mark for a phone is outrages which it costs let’s say $300-400 to make.

      Cellphones all cellphones should be less then $1,000 mark for one no matter what it has. Displays, GB or RAM shouldn’t make a device costs as much as a used Macbook or a 55inch 4K tv you know?

    • thereasoner

      I agree, costs for flagship phones are crazy but so long as demand is there they won’t go down in costs. The best you can hope for is the deals/discount options previously mentioned.

    • Dimitri

      Yeah that is true. At this point the deals are better then anything. Maybe ask “why not buy it outright”. To me I rather not spend $1,500+ outright on a buy phone. I rather spend that on a Bill or something more important to be honest.

      Waiting for deals is the best way for not until they bring down the pricing.

    • toysandme

      I think you are quoting manufacturing costs instead or REAL costs with r&d and advertising.

    • Dimitri

      Again as explained above, I am talking about device manufacturering only. Not R&D or advertising.

    • Mr Dog

      You work for Apple? 😛

      They aren’t charging an absurd amount of money. They are making about 30%-40% margins. Their prices might be high but they put a fair amount more of R&D into their machines than a random Acer.

    • Dimitri

      No but a quick research will show you the true cost on how much a iPhone 7 costs to make.. Yes the R&D is not included but I am talking about the device cost here.

    • Mr Dog

      Yeah, but device build cost means nothing in this context.

      You cannot say why is Apple charging $1000 for a phone that cost $300 in components cause there is SOOO much more to it.

  • ciderrules

    Apple winning again as usual.

    Guidance for next quarter is very good. The high end of their guidance would actually be a record for their highest Q4 in history.

  • Mr Dog

    While I don’t expect better from enagadget, that entire articles is just drawing conclusions and doesn’t have a single fact to back up theory point.

    While Apple did introduce a lower priced iPad, it was not necessarily the reason for the larger sales.

    Looking at their numbers, the average selling price for the iPad was about the same as previous years. Which does not line up with the Engadget article.

    If the lower priced iPad were the large movers we would have seen a drop in their average selling price. So they had just as much an increase in sales of the expensive iPads as they did the cheaper s ones.