Aquilla

Apple Results Q1 2015Summary and Commentary

Note: Apple Q1 = Calendar Q4

AquillaSource: Apple Results

Quarterly RevenueApple in Growth •Wall Street had been

talking up the numbers leading up to the announcement, yet Apple still managed to crush the most bullish forecasts, with quarterly revenues of $74.6B

•Comparisons with leading competitors are revealing, in particular with Samsung

Electronics, whose revenues fell by 11% in Q4 (25% in USD), and Samsung Mobile, which fell by 22% (34% in USD)

•Apple’s uptick in growth is marked, and all the more startling considering the size of the company today.

Comparative Revenues CQ4 2014

Sam

sung

Elec

tronic

s

Mic

roso

ft

Googl

e

0%

15%

30%

45%

60%

75%

90%

0

15

30

45

60

75

90

Q1 '09

Q2 '09

Q3 '09

Q4 '09

Q1 '10

Q2 '10

Q3 '10

Q4 '10

Q1 '11

Q2 '11

Q3 '11

Q4 '11

Q1 '12

Q2 '12

Q3 '12

Q4 '12

Q1 '13

Q2 '13

Q3 '13

Q4 '13

Q1 '14

Q2 '14

Q3 '14

Q4 '14

Q1 '15

Q2 '15

Q3 '15

Q4 '15

Revenue Growth

(%)

Revenue (B$)

Apple Revenue

Revenue B$ Revenue YoY Growth

Sam

sun

g M

ob

ile

AquillaSource: Apple Results

Cash, Investments & Capital ReturnCapital Return Program Grows •Apple generated $33.7B of cash from

operations in the Quarter, another huge record, 50% greater than the year-ago quarter

•The company returned $7.8B to shareholders during the quarter, mostly through Stock Repurchases

•Long and short term cash holdings grew by $23B in the quarter, and the company now has over $178B in cash

•This is enough to pay off the national debt of Israel or Thailand, and is more than the GDP of Kuwait

•Much of the cash remains outside the US, held there for tax reasons

0

20

40

60

80

100

120

140

160

180

200

Q1 '09

Q2 '09

Q3 '09

Q4 '09

Q1 '10

Q2 '10

Q3 '10

Q4 '10

Q1 '11

Q2 '11

Q3 '11

Q4 '11

Q1 '12

Q2 '12

Q3 '12

Q4 '12

Q1 '13

Q2 '13

Q3 '13

Q4 '13

Q1 '14

Q2 '14

Q3 '14

Q4 '14

Q1 '15

Q2 '15

Q3 '15

Q4 '15

(B$)

Cash & Capital Return

Short Term Cash B$ Long Term Cash B$

Cash Generated B$ Capital Return B$

AquillaSource: Apple Results

Revenue Mix by Product LineiPhone dominates •iPhone’s dominance

was massive, with 69% of the revenues, and probably nearer 75-80% of the profit in the quarter

•Despite a strong quarter for Mac, with 9% growth, it was squeezed down to 9% share of the mix

•iPad was the big loser, declining a further 22%, but remaining larger than Mac in this Holiday quarter

•Services continues to grow (but needs subscription audio)

•Other Products declined with iPod, which was about a third of this category in Q1 2014

•iOS hardware topped 80% of revenues

Most recent$ Share $ YoY

4% -5%

6% 8%

9% 9%

12% -22%

69% 57%iPhone M$

iPad M$

Mac M$

Services M$

Other Products M$

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q1 '09

Q2 '09

Q3 '09

Q4 '09

Q1 '10

Q2 '10

Q3 '10

Q4 '10

Q1 '11

Q2 '11

Q3 '11

Q4 '11

Q1 '12

Q2 '12

Q3 '12

Q4 '12

Q1 '13

Q2 '13

Q3 '13

Q4 '13

Q1 '14

Q2 '14

Q3 '14

Q4 '14

Q1 '15

Product Line Revenue Mix

Services: iTunes, App, Mac App & iBooks Stores, AppleCare, Apple Pay, licensing, other services

Other Products: iPod, Apple TV, Beats Electronics and Apple-branded and third-party accessories

Aquilla

Services Trailing 12 months - SlowingTracking the trailing 12 months (current and 3

previous Quarters) eliminates seasonality, and

gives a better indication of the longer term trends

Source: Apple Results

0

4,000

8,000

12,000

16,000

20,000

0

1,000

2,000

3,000

4,000

5,000

Q1 '09

Q2 '09

Q3 '09

Q4 '09

Q1 '10

Q2 '10

Q3 '10

Q4 '10

Q1 '11

Q2 '11

Q3 '11

Q4 '11

Q1 '12

Q2 '12

Q3 '12

Q4 '12

Q1 '13

Q2 '13

Q3 '13

Q4 '13

Q1 '14

Q2 '14

Q3 '14

Q4 '14

Q1 '15

Q2 '15

Q3 '15

Q4 '15

Trailing 12m Revenue

($M)

Revenue ($M)

Services Revenue

Services M$ Services Trailing 12m M$

Services: iTunes, App, Mac App & iBooks Stores, AppleCare, Apple Pay, licensing, other services

AquillaSource: Apple Results

Geo Revenue and 12m TrailingAmericas/China Ticked Up •Trailing 12 months shows clearly

where Apple’s growth came from - Americas, China and Europe

•iPhone 6 was not available in China in Q4, hence the very sharp uptick in Q1

•That EMEIA saw good growth is particularly impressive in light of the Eurozone stagnation

•Japan was the one weaker region •APAC is small, but ticked up nicely

Tracking the trailing 12 months (current and 3

previous Quarters) eliminates seasonality, and

gives a better indication of the longer term trends

0

20,000

40,000

60,000

80,000

100,000

Q1 '09

Q2 '09

Q3 '09

Q4 '09

Q1 '10

Q2 '10

Q3 '10

Q4 '10

Q1 '11

Q2 '11

Q3 '11

Q4 '11

Q1 '12

Q2 '12

Q3 '12

Q4 '12

Q1 '13

Q2 '13

Q3 '13

Q4 '13

Q1 '14

Q2 '14

Q3 '14

Q4 '14

Q1 '15

Revenue $M

Geo Revenue and 12m Trailing Revenue

Americas EMEIA Greater China Japan APAC

Americas 12m Trailing EMEIA 12m Trailing Greater China 12m Trailing Japan 12m Trailing APAC 12m Trailing

Aquilla

Apple’s Q1 Results Analysis - Full Slide Deck

Aquilla

Apple’s Q1 Results Analysis

These popular slides cover an in-depth analysis of Apple’s historic record-beating Q1 results

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