Jason Calacanis CNBC Squawk Alley 10/26: Apple Q revenue decline, future of services & iPhone demand

TL;DR

Apple's fiscal fourth-quarter results showed a decline in annual revenue for the first time in 15 years. The company beat estimates on sales and net income, primarily driven by better-than-expected iPhone sales. Apple is now focusing on its services business.

Transcript

joining us this morning at post nine this time inside.com founder and CEO Jason Calacanis and out west marked asset management president Morris mark gentlemen good morning to all of you our top story this morning his Apple releasing those fiscal fourth-quarter numbers after the close first annual revenue decline in 15 years for the quarter sales an... Read More

Key Insights

• 🖤 iPhone sales remain strong, but there is uncertainty about future growth due to longer upgrade cycles and the lack of compelling new features.
• 👨‍💼 Apple's services revenue has shown significant growth and has the potential to become a highly profitable business for the company.
• ❓ Supply constraints are not a major concern for Apple, as the demand for the iPhone 7 has been robust.

Questions & Answers

Q: Are iPhone sales declining, and how does this impact Apple's growth?

Although there has been a decline in annual revenue for Apple, iPhone sales have remained strong. However, people are taking longer to upgrade their iPhones, and the new features on the iPhone 7 may not be compelling enough to drive significant growth in the future.

Q: What is the significance of Apple's services revenue?

Apple's services revenue, which includes Apple Play and other services, has seen significant growth and is now a profitable business for the company. It could continue to grow and become a significant source of revenue for Apple in the future.

Q: As an investor, is it worth waiting for Apple's services business to drive overall earnings?

As an investor, there is potential for growth in Apple's services business. However, the rate of growth and its impact on overall earnings may not be as optimistic as some suggest. It is essential to consider other aspects of Apple's business before making investment decisions.

Q: How are supply constraints affecting Apple's performance, and is it a concern?

Supply constraints are not necessarily a concern for Apple. In fact, the strong demand for the iPhone 7 has led to a supply problem rather than a demand problem. This indicates that there is interest in upgrading to better iPhones, and it bodes well for Apple's future performance.

Summary & Key Takeaways

• Apple reported its fiscal fourth-quarter numbers, revealing a decline in annual revenue for the first time in 15 years.

• Despite the decline, Apple beat estimates on sales and net income due to better-than-expected iPhone sales.

• Apple's CEO, Tim Cook, expressed optimism about returning to growth and outlined the company's focus on the services business.