Apple’s earnings call just wrapped up and it’s easily defined by these two words: “Fall transition.”CEO Tim Cook and CFO Peter Oppenheimer talked about the “fall transition” repeatedly during the Q&A with analysts.
The “fall transition” is their not so subtle way of talking about the new iPhone, which is reportedly coming in September.
Apple’s iPhone sales for this quarter were worse than expected coming in at 26 million units compared to the 29 million the Street was looking for.
Guidance for the September quarter was considerably below expectations. Apple always guides lower than expected, but this was even lower than low. Blame the “fall transition.”
This “fall transition” is a blessing and a curse for Apple. It slows sales for two quarters. But it doesn’t mean people don’t want Apple products. It just means they’re willing to wait.
As Tim Cook said on the earnings call, “I’m glad people want the next thing. I’m super happy about that.”
Business Insider Emails & Alerts
Site highlights each day to your inbox.