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Apple spun its “record” results

by on07 February 2017


These are not the record profits that the press claimed

The fruity tax dodging cargo cult may have spun its results last week so that the Tame Apple Press thought that it had done much better than was expected.

When Apple published its results, we were surprised as we expected the company to be in a somewhat poorer state due to slumping iPhone 7 and Tablet sales.

Imagine our surprise when Apple announced that it made record profits. After all we knew that Apple had actually contracted its supply of its iPhone's twice and tablets were a mess – how was it possible to be making even more money?The Tame Apple Press reported that everything was alright and Jobs' Mob was back seemingly without coming up with a new product.

We were not the only people who smelt a rat. Jason Snell and the Under pass also thought there was something wrong and delved into the figures. Before the lawyers complain that we are calling Apple liars, there is no proof that it lied, it just failed to point out that the Tame Apple Press was wrong.

Most Apple fiscal quarters are 13 weeks long. Occasionally, however, they have a 14-week quarter. Apple’s Q1 2017 was a 14-week quarter, for the first time since Q1 2013. This means that Jobs' Mob could add in the results of an extra week’s profit.

Snell said that even a rubbish week would add enough to counting stats to push it well above the year-over-year quarter, which was 13 weeks long. In fact, if you knock off a week from the results Apple’s sales and profits fell exactly like we expected.

He said it was possible to make the numbers tell the story you want to tell, with charts to match, and slice it nine different ways.

Part of the issue which the Tame Apple Press failed to spot was that Jobs’ Mob finances were based on its financial statements—and that means the quarters as Apple defines them. In this case Apple has defined an extra week of sales that it won’t get again for another few years.

To make matters worse, it was a windfall week that next year’s year-over-year holiday-quarter comparison will not be able to match.

But that was not the only thing Apple did. A huge settlement benefit hit the first quarter of FY16, which makes Services look even better but doesn’t change the overall net so everything is artificially inflated.

So where are the analysts pointing out that Apple might not be the investment that people claim? When this happened in 2013, the Tame Apple Press did exactly the same thing and Philip Elmer-DeWitt wrote a brilliant headline "Apple analysts: Stupid or lazy?" This time they did the same thing and few people have batted an eyelid.

Last modified on 07 February 2017
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