Alphabet Announces First Quarter 2020 Results [pdf]
abc.xyz
abc.xyz
Doesn't look like any such effects are visible from these numbers, at least.
Source: https://reclaimthenet.org/youtube-ad-revenue-coronavirus/
They steer and try to lock their userbase with those few high performers. That would explain this.
2019 Q1 - ($868)
2020 Q1 - ($1,121)
This has to change, right? How can that number keep going up?
Google/Facebook can have all the MAU and views in the world, but if there is no one interested in buying ad space, then all that attention is effectively worthless. In recessions, one of the first things to go is ad spend.
People aren’t going to do without phones and at least in the US where all of the major carriers offer 0% interest payment plans. Over the course of two years, the monthly price of an iPhone isn’t that much more than a cheap Android phone. All most people care about is the monthly cost.
Also, Apple unlike any other phone manufacturer has a direct relationship with the customer and has its own payment plans.
Finally, while Apple’s revenue had start back growing pre-Covid, services has been growing like crazy. Even if people keep their iPhones longer, Apple is still making money off of them - unlike any other phone carrier. Apple is much better diversified than Google.
Also btw the argument applied to spending on luxuries. No one is going to upgrade on phones in this atmosphere.
https://www.fool.com/investing/general/2016/04/27/apple-inc-...
Do you think people who prefer an iPhone are going to buy an Android phone or buy a cheaper iPhone?
Also, Apple sells the iPhone XR and iPhone 11 for less than $1000.
Why would Apple - led by the supply chain master himself - admit during earnings that they miscalculated demand leading to lower sales if they were merely trying to spin a positive narrative? Why would it be a positive narrative that people wanted to spend less money and not more?
Apple is the quality leader on the market, not cost leader, so the SE is not good indicator of the direction a company that relies on brand is going.
It's like Ferrari releasing a commuter vehicle. Sure it may sell a lot up front but it cannibalizes future sales.
In the iPod era it sold millions of $70 iPod shuffle’s alongside $350 hard drive based iPods.
Apple has been selling the regular iPad for $329 for three or four years.
You’re also not taking into account the concept of the “attach rate”. Once you buy an iPhone, Apple can make money off of you via services - iTunes, Apple Music, Apple Arcade, iCloud, the App Store, iBooks, etc. Thats not even counting other hardware like AirPods and the AppleTV.
Cook admitted awhile back that the Apple Watch alone generates more revenue than peak iPod. Analyst think that the AirPods probably also make more than the iPods ever did.
You are clearly a fan boy, no point engaging with logic here. You will clearly see when Apple numbers will go down this year. Not even your messiah Tim Cook of the House of Supply Chain can prevent that.
But if you haven’t noticed, Apple’s “competitors” in the phone market haven’t actually been able to make any money in a decade. Only Samsung makes any real profit in the phone market (much less than Apple) but only because of their manufacturing arm - not their phones.
You're right in that the SE is Apple cannibalizing its own brand, the same way Starbucks did in the 2000s. Apple is the quality leader on the market, not cost leader, so the SE is not good indicator of the direction a company that relies on brand is going. It's like Ferrari releasing a commuter vehicle. Sure it may sell a lot up front but it cannibalizes future sales.
That has nothing to do with Apple being “fine” for Covid.