Dear Friends,

Definitely some weird weather in Vermont. One day it is below 0 F and the next day it is in the 40’s and raining. It makes for some tricky driving as wet pavement can hide some black ice. Hopefully as we enter March there will be some snow because the ski areas and local merchants are suffering from the weird weather. We can take a lot of snow and freezing temperatures but this freeze/thaw cycle is just annoying.

Apple has very strong hardware sales but their hidden gem may be the recurring revenue streams that they develop. Of course, we know about the 11 million+ subscribers to Apple Music that pay a monthly fee and the iCloud storage fees but there are other much larger streams that provide Apple with consistent revenue. The iPhone is a big one that has two parts to it – on the one hand, people want to upgrade to the latest iPhone and that upgrade business is huge. There is also Apple’s new financing of iPhones that spreads the cost of the iPhone over several months and allows much easier iPhone upgrades. The carriers are also offering these easy upgrade programs which enhances the recurring revenue stream. It is sort of like printing money.

This week’s Kibbles & Bytes exclusive features the Apple Factory Reconditioned 21.5-inch iMac with 2.7GHz i5 processor, 8GB of ram and a big 1TB drive. We are bundling this with the AppleCare Protection Plan which extends Apple’s 1-year warranty to 3-years and extends your 90-days of free technical support from Apple from 90-days to 3-years. To complete this bundle because we always want you to have a backup of your personal data, we are including the Apple Factory Reconditioned 2TB Time Capsule. The Time Capsule is the combination of an Airport Extreme base station and 2TB hard drive. Because you are buying it at the same time as the iMac it is also covered for 3-years by AppleCare! Normally, if you bought this bundle new it would cost $1769, bought normally as Apple Refurbished it would be $1399 but this week for Kibbles & Bytes readers you can get this great deal on an iMac with Time Capsule and AppleCare for only $1299.99!

Similar Posts

  • Audit How You Appear in Google Search

    Google has created a free service that lets you see what of your personal and professional information has been published on the Web….

  • Apple Stands Up The Street

    $50.6 Billion in revenue, $10.5 Billion in net profit and $235 Billion in the bank. Let’s get one thing straight, 99.9% of the companies in the world would love to have those kind of numbers. And while this fell into the range of Apple’s forward-looking guidance, it did fall short of the expectations of the analysts.

    This was the first time in 13 years (!) that Apple posted lower year-over-year sales. Apple saw lower iPhone sales than last year at this time. However, keep in mind that was when the iPhone 6 was at its peak. Nevertheless, Apple sold 51.1 million iPhones and said they are having difficulty keeping up with the demand for the recently released iPhone 5se.

    Mac sales and iPad sales also declined as expected with Apple selling a bit over 4 million Macs and 10.25 million iPads. On the bright side, Services revenue increased 20% to almost $6 billion and “other” products which include Apple TV, Apple Watch, Beats and iPod generated $2.189 billion which is 30% growth.

    Apple’s board of directors both increased the dividend paid on Apple shares to $0.57 which is about a 10% raise and increased their share buy-back program. With Apple being so widely held, this dividend increase makes Apple one of the largest payers of dividends in the world. Since the start of their dividend and share re-purchase program, Apple has returned over $163 billion to shareholders, the majority of that being in the form of share buy-backs.

    Apple’s guidance for the current quarter which ends at the end of June also projects a year-over-year decline in revenues. They forecast sales in the range of $41-$43 billion which is also lower than analysts predicted.

    There is no sugar-coating these results which were for the most part, a miss. Forecasting demand, revenue and margin is tricky and there are a bunch of factors that enter into this calculation and a bunch more that are ready to blow up the forecast. International monetary trends, new product introductions are all a bit of a wild card.

    There is some good news hidden in the report. Apple said that the iPhone enjoys an unprecedented 95% loyalty rate, Apple Pay is seeing 1 million new users a week, 13 million people subscribe to Apple Music and Apple’s installed base is 1 billion devices and growing.

    Apple had a huge hit with the iPhone 6 and that did push sales to a peak level last year. It was an anomaly, however, and Apple’s business is still incredibly strong, just a bit more down to earth. You can’t hit home runs every time at bat! Tim Cook says the product pipeline is strong and I believe him.

    Hey, I didn’t have to come up with a new adjective to describe what Apple did to the street this quarter. That’s a fringe benefit. Putting this all into perspective is important. It is not like Apple is losing money or losing customers. In fact, the opposite is true. In three short months, they made over $10 billion in profit and sold millions and millions of iPhones, iPads and Macs! Now, if Small Dog could just do a tiny fraction of that…

  • Lift Objects from Photos on the iPhone

    Have you ever wanted to extract an object from a photo for use in another context? Starting with iOS 16 on a relatively…