Apple 3Q15 Earnings

Today's Above Avalon stories: 

On a granular level, I picked out five sub-themes that I saw from Apple's 3Q15 earnings report and conference call (the full email is 3,000 words):

  • Big Picture
  • Stock Price Reaction
  • iPhone: Relatively Quiet (Which is Good)
  • Apple Watch: It's Very Early and Things Look Okay
  • iPad Sales Growth: Fact vs. Theory
  • Share Buyback: It's Slowing
  • Additional Earnings Call Notes

Apple reported strong 3Q results due to sustained iPhone 6 and 6 Plus sales momentum throughout the world, especially in China, Europe, Japan, and emerging markets. Revenue growth would have been 41% excluding FX impact, which is downright remarkable given Apple's size. Not only are larger screen iPhones resonating with consumers, but they continue to provide Apple with margin expansion and pricing power. The iPhone 6 Plus may end up impacting the smartphone landscape more than any other phone in the market. While Apple gave enough clues to reach Apple Watch sales of between 2-3 million units, it is simply too early to draw any long-term conclusions about the device's sales potential. 

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