Apple's Much-Maligned iPhone SE Strikes Back

Just a quick hit for today.


Apple has taken a lot of flack for its recently introduced iPhone SE. Given that, I found this quote from Tim Cook on today's earnings call very interesting.
We had a very successful global launch of iPhone SE, and demand outstripped supply throughout the quarter. We brought on additional capacity and were able to achieve supply/demand balance as we entered the September quarter. At its launch, we said that the addition of the iPhone SE to the iPhone lineup placed us in a better position to meet the needs of customers who love a four-inch phone and to attract even more customers into our ecosystem. In both cases, that strategy is working. Our initial sales data tells us that the iPhone SE is popular in both developed and emerging markets, and the percentage of iPhone SE sales going to customers who are new to iPhone is greater than we've seen in the first weeks of availability for other iPhones launched in the last several years. (Italics mine, for emphasis)
Further, while the iPhone SE's lower price point brought the overall iPhone ASP down to $595 for the quarter, Apple was able to achieve gross margins of 38%, right at the top of their guidance range.

While, as ETF Monkey, by far the bulk of my personal portfolio is held in ETFs, I do hold a weighting of approximately 4% in Apple. In fact, it is my largest single-stock holding.

Today's report makes me very happy.

Comments

  1. Forex Trading Company Italy | Forex Trading Company Albania


    This blog has just awestruck me!
    I wonder how the writer can come up with something so gripping.
    Thank You.

    ReplyDelete
    Replies
    1. Habeeb,

      Thanks for your kind words. Much appreciated.

      Delete

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