Original link: https://www.latepost.com/news/dj_detail?id=1362
Earnings report: Apple lives in another world
In the face of a potential recession, foreign exchange storms, and various other risk events, Apple continues to do well.
Compared to its peers, Apple seems to be living in a parallel world. Its privacy policy limits Facebook’s ability to monetize user data, indirectly affecting Google’s ad profits. At the same time, it has maintained growth in complex times and has returned more than $700 billion to shareholders over a decade.
In the third quarter of this year, Apple’s revenue was approximately US$90.146 billion, an increase of 8.1% year-on-year, and the gross profit margin reached a record 42.3%. The iPhone, which is most important to Apple, had revenue of about $42.6 billion in the quarter, up 10 percent from a year earlier.
According to Canalys data, in the context of an 11% decrease in domestic smartphone shipments in the third quarter, Apple bucked the trend and grew by 36% (11.3 million units shipped), making it the only brand that achieved growth among the top five brands in terms of market share. In other major markets such as the U.S., Europe, and Japan, Apple also achieved record third-quarter iPhone sales.
The strong momentum continues. According to industry sales data obtained by “Waidian Finance”, on the first day of the “Double Eleven” pre-sale on October 24, the sales of iPhone 14 Pro and Pro Max alone exceeded 130,000 units. According to data obtained by “Waidian Finance” from an industry research institution, the sales of these two models combined exceeded 800,000 units in the second week of October (over 100,000 units per day), and the Pro Max, which starts at 8,999 yuan, sold more. many.
According to the average sales price of 9,000 yuan and 10,000 yuan, the domestic weekly sales of the 14 Pro series reached 7.2 billion to 8 billion yuan. For reference, Xiaomi’s global mobile phone sales revenue in the second quarter was about 42 billion yuan, with an average monthly revenue of 14 billion yuan. If half of them come from the domestic market, it means that Apple’s two mobile phones can be sold in a week to catch up with Xiaomi’s domestic sales for a month.
Under the superposition of different cycles, some electronic consumer brands have accumulated inventory, while Apple’s inventory level as of the end of September was the lowest since the fourth quarter of 2020, dropping to $4.946 billion. Cook said in the performance conference call that the 14 Pro series is in short supply, and the team is trying to find ways to meet the demand as much as possible – such as requiring Foxconn to reduce the production of the 14 Pro series and increase the production of the 14 Pro series – but in this regard, Apple may encounter new challenges.
Foxconn’s Zhengzhou factory is Apple’s largest iPhone production site. Recently, in order to cooperate with the epidemic prevention and control, Foxconn claimed to have asked “a small number of employees” to quarantine. In April of this year, when the Zhengzhou Airport Economic Comprehensive Experimental Zone, where the factory is located, implemented a seven-day traffic control, Foxconn stated that “Foxconn’s Zhengzhou factory cooperates with the local government’s epidemic prevention work, and the factory is currently operating normally.” A May report from People’s Daily Online stated:
On May 9, Zhengzhou Airport District coordinated 9 buses to go to Kaifeng City, Pingdingshan City, Xinxiang City, Zhumadian City and other cities, using a “point-to-point” closed-loop management method to pick up and transport workers for key enterprises in the area… …According to the requirements of the “Emergency Notice on Doing a Good Job in the Employment and Transportation Guarantee of Key Enterprises”, vehicles carrying out the task of supporting employment and transportation in key enterprises should carry out “point-to-point” transportation, and carry the “Pass” with the vehicle. The principle of “consistent certificate, must bring every vehicle, and report when leaving the vehicle” is used, and closed-loop management is implemented for the whole process of the drivers and passengers who perform transportation tasks.
However, according to Wind data, the export value of the airport experimental zone in the month fell by 4.16% year-on-year non-seasonally.
In fact, Apple is already one of the companies with the highest continuous productivity among many multinational manufacturing companies. The main Mac production base in Shanghai resumed normal production in June, and with the launch of the new MacBook Air and Pro, Mac sales reached a record $11.51 billion. At the beginning of the new crown pneumonia epidemic in 2020, Foxconn, as the world’s largest Apple product foundry, has received similar local government support for work resumption.
There is also the support of core upstream suppliers such as TSMC. According to comprehensive media reports, Apple and Arm have locked in more than 80% of TSMC’s advanced process capacity (5nm and more advanced) as early as December 2020. In April last year, Apple locked TSMC’s first batch of 4nm process production capacity. The tripartite research report estimates that Apple accounts for a quarter of TSMC’s annual sales.
Apple’s product strength and brand value have grown in a causal relationship over the two-year period, and they can further capture new users and consolidate their share of the high-end market without spending a lot of money on advertising.
Apple’s sales and administrative expense ratio was about 7.1% in the quarter (6.7% last year), and its old rival Samsung was 23.3% (20.6% in the same period last year). But Cook said on the third-quarter conference call that it had a record number of new and existing users in the quarter, including a double-digit year-over-year increase in the number of users who switched from Android.
There is no shortage of headaches for management. In addition to potential production capacity threats, Apple is, like other U.S. companies, hurting profits due to the strong dollar. Management estimates that the impact in the third quarter exceeded 6% of revenue. They expect several negative factors to cause the company to “decelerate” in the fourth quarter, with revenue growth expected to be lower than the 8.1% growth in the third quarter.
After the earnings report was released, Apple’s stock price rose more than 5%. This week, the stock performance of several other giants after the release of the financial report was very poor. Amazon fell 7% (after the announcement of the financial report, the next few companies have the same caliber), Meta fell 20%, Google fell 2%, and Microsoft fell 2%. (Gong Fangyi)
The debt ratio of state-owned enterprises continues to be lower than that of the private economy
On October 27, the National Bureau of Statistics released the regular operation data of industrial enterprises above designated size (with an annual income of more than 20 million). In the first nine months of this year, the total profit of industrial enterprises above designated size decreased by 2.3% year-on-year to 6,244.18 billion yuan, and the operating income exceeded 10 trillion yuan, an increase of 8.2% year-on-year.
- Among the 41 major industrial sectors, the total profit of 19 industries increased year-on-year, while 22 industries decreased.
- The overall revenue growth rate of industrial enterprises rebounded to 6.8% in September, and the decline in total profits narrowed to 3.8%.
- Electricity and heating, electrical machinery, oil and gas extraction and the automobile industry contributed the most to the growth in monthly profits.
The debt-to-asset ratio data released at the same time shows that this year is a year for industrial enterprises to “increase leverage”. As of the end of September, it has increased by 0.7 percentage points compared with the end of last year, reaching 56.8%. Since the Bureau of Statistics released the data in 1999, only 2007, 2008 and 2018 have seen similar increases.
According to a report by the Huachuang Securities Research Institute, of the 36 industrial sub-sectors released by the Bureau of Statistics, 31 increased leverage this year, compared with 19 last year.
- The asset-liability ratio of ferrous processing, non-ferrous processing, non-metallic mineral products, metal products, chemical fibers, and fuel processing upstream of the manufacturing industry increased by more than 1 percentage point compared with the end of last year.
- The asset-liability ratio of electrical machinery and transportation equipment increased by nearly 2 percentage points from the end of last year.
Different businesses have different attitudes towards debt. The asset-liability ratio of private industrial enterprises above designated size has been higher than that of state-controlled industrial enterprises for 30 consecutive months. At the end of September this year, the asset-liability ratio of the former was about 58.9%, 1.5 percentage points higher than that of the latter.
Accompanying the increase in the debt ratio of private enterprises is the average receivables collection period (51.7 days, data at the end of September). However, financial expenses (interest expenses) decreased by double-digit year-on-year, and the decline rate expanded.
One possible explanation is that private companies with relatively tight liquidity have already borrowed money in the early and mid-term of the new crown epidemic, and the financial expenses incurred constitute a high base. According to Wind data, from 2020 to February 2021, the financial expense ratio of private enterprises is between 0.9% and 1.21%. It remained at around 0.8% in the following year. (Gong Fangyi)
Musk takes over Twitter, ‘trying to help the humans I love’
No one knows what Twitter will look like under Musk’s command, so many changes.
First, Twitter will be delisted from the New York Stock Exchange since Musk completes the acquisition on October 28, and then it will be removed from the S&P 500 index, saying goodbye to the global trillions of dollars in active and passive investment funds.
Then CEO Parag Agrawal, CFO Ned Segal, and head of legal policy and security Vijaya Gadde were fired. General counsel Sean Edgett is also understood to be sidelined.
Musk vowed not to turn Twitter into a place of misinformation and hate speech. The acquisition of Twitter was not to “make more money,” but to “try to help the people I love.” He also wanted to say to advertisers:
In their relentless pursuit of clicks, many traditional media outlets foster and pander to extreme sentiments because they see it as a way to make money, but in doing so, they lose the opportunity for dialogue. I bought Twitter not to make more money, but to help the people I love. I do this with humility…We are a platform warm and welcoming to everyone, you can say what you want to say…
I believe if done well, Twitter can show you services or products or medical treatments that you never knew were right for you. To do this, Twitter users must be shown ads that are as relevant to their needs as possible. Low-relevance ads are spam, but high-relevance ads are actually content! Fundamentally, Twitter aspires to be the most respected advertising platform in the world, strengthening brands and helping businesses grow.
Thanks to everyone who works with us. Let’s create miracles together.
While speaking well, as “Too Big to Fail” author Andrew Sorkin said in his op-ed, Musk faces more major decisions:
- Musk promised to give $100 million in incentives to 7,500 employees after the acquisition, but employees were worried that Musk would be fired before the money was available.
- Corporate governance issues such as conflicts of interest. Musk has asked Tesla’s engineers to meet with Twitter’s product managers. Tesla is a public company, not Musk’s one-man company.
- Musk is now the CEO of four companies, Twitter, Tesla, SpaceX, and Boring Company, and tests his time management skills. Twitter co-founder and former CEO Jack Dorsey, who encouraged Musk’s acquisition, has remained silent. (Gong Fangyi)
Because of the lack of cores, Toyota has to “reduce” even the car keys
It is said that the production capacity of automotive chips is not a problem. Toyota refused.
In a statement on Thursday, they said in a statement on Thursday they had to temporarily replace one of the two smart keys provided to owners with a mechanical key in order to deliver in a core-deficient condition as quickly as possible.
The new policy applies to 14 models such as Crown and Prius sold in Japan, and its premium brand Lexus will follow suit.
Toyota promised to reissue the second smart key for car buyers as soon as possible, so they probably did not make a technical “return to the ancestors” of the vehicle itself, but just temporarily couldn’t afford two car keys equipped with wireless transceiver chips.
At present, many cars are equipped with keyless entry systems. After the car is locked, it will continuously transmit wireless signals. When the smart key appears within the signal range, it will receive and send a signal back to the car, and the door will be unlocked after matching. These chips are so cheap that automakers don’t want to spend more, and fabs don’t feel the need to allocate excess capacity.
The missing core of the remote control key is relatively extreme. In the past two years, due to the large-scale shortage of automotive chips, many car manufacturers have adopted a greater degree of reduction.
For example, BMW has canceled the optional automatic driving assistance system for many models since May last year, or the high-end audio system function in the entertainment package; Ideal will directly deliver the ideal ONE model, which lacks two millimeter-wave radars, to users first. Use, promise to refill later.
At the same time, some car manufacturers will choose to replace the non-core areas of the car with industrial control chips. Even used or refurbished chips, temporarily sourced from the second-hand market, make their way into car production lines.
This may not cause major safety and performance problems in the car, but the car produced in this condition may not be as reliable as before. At an automotive electronics industry event held in Shanghai on Tuesday, Luo Daojun, senior vice president of the Institute of Components and Materials of the Fifth Institute of Electronics of the Ministry of Industry and Information Technology, reminded everyone present:
Compared with consumer-grade and industrial-grade products, automotive chips need to withstand harsh environmental requirements such as high temperature, high cold, and humidity every day, and have very high requirements for resistance to vibration, shock, reliability and consistency. The failure rate of the former may be 10% of the latter. times more.
OTHER NEWS
The Shanghai Composite Index hit a new stage low, and over 4,500 stocks in the two markets fell.
Today, the Shanghai Index fell 2.25%, the Shenzhen Component Index fell 3.24%, and the ChiNext Index fell 3.71%. The northbound funds sold a net 2.032 billion yuan throughout the day; the Hang Seng Index fell 3.66%, and the southbound funds had a net inflow of HK$4.28 billion. Ningde era fell more than 6%.
The high investment in variety show advertisements dragged down Yili’s profits.
Yili’s third-quarter net profit was 1.929 billion yuan, down 26.46% year-on-year. The company’s share price fell by the limit today, hitting a 44-month low. Qiu Xiangmin, secretary of the board of directors, said at the performance briefing that some variety shows that were originally scheduled to be broadcast in the first half of the year were delayed, resulting in a higher cost rate in the third quarter, and the impact of the epidemic on room temperature liquid milk was beyond prediction. The company said it is carefully evaluating marketing expenses next year and expects the sales expense ratio to return to a downward trend.
The profit of bicycles has risen significantly, and BYD has torn off the label of “not making money”.
In the third quarter, BYD’s revenue reached 117.08 billion yuan, a year-on-year increase of 115.59%, and its net profit was 5.716 billion yuan, a year-on-year increase of 350%. Revenue, net profit and gross profit margin all hit quarterly new highs. Driven by price increases, economies of scale and sales growth of high-end models, BYD’s profit per vehicle in the third quarter was close to 10,000 yuan, five times that of half a year ago.
Dongguan expanded the provident fund pool to include current students and foreigners in the payment scope.
The new policy of provident fund in Dongguan City, Guangdong Province lowers the age limit. Individual industrial and commercial households and their employees, Taiwan, Hong Kong and Macao personnel, foreign personnel, and school students who have reached the age of 16 and have not reached the statutory retirement age can pay the provident fund as flexible employment personnel, which is the same as that of on-the-job employees. provident fund rights. The policy will be implemented on a trial basis for two years starting October 28.
With the millions of passengers in Wuzhen Scenic Area, CYTS’ profit in the third quarter rose by more than 800%.
According to the third quarterly report of CYTS, the revenue during the period was 1.952 billion yuan, a year-on-year decrease of 27.99%; the net profit was 33.87 million yuan, a year-on-year increase of 831.18%. Thanks to the relief of the epidemic and the peak business seasons such as summer vacation and mid-autumn holiday, Wuzhen and Gubei Water Town, the main scenic spots of CYTS, received a total of 1.1319 million tourists in the third quarter, contributing more than 500 million yuan in revenue.
Adi and Nike were sluggish, and the profit of the agent Taobo Sports fell by nearly 20% in the first half of the year.
The latest financial report of Taobo Sports shows that the revenue for the six months ended August 31 fell by 15.1% year-on-year to 13.218 billion yuan, and the net profit was 1.15 billion yuan, a year-on-year decrease of 19.9%. As the largest agents of Nike and Adidas in the Chinese market, the two brands account for nearly 90% of Taobo’s revenue. In the first half of the year, the average inventory turnover days was as high as 167.6 days. Topsports currently has 6,928 stores, a decrease of 857 from the same period last year.
Intel promised to cut costs dramatically, and the market thought it was the right thing to do.
Declining PC market demand dented Intel’s revenue and lowered its full-year guidance. The company’s third-quarter revenue was $15.34 billion, down 15% year-on-year. CEO Pat Gelsinger said that uncertainty will continue into next year, and it will be difficult to improve in the short term. In response to the market downturn, Intel has thrown out plans to cut jobs, including layoffs and production cuts, and expects to cut costs by $3 billion next year and as much as $10 billion in the next three years. The market bought it very much, and Intel’s stock price rose more than 5% after the market.
McDonald’s has kept revenue growth by raising prices.
McDonald’s always seems to weather a recession on its own, and this time was no exception. The three-quarter report showed that the restaurant chain giant’s same-store sales increased by 9.5% year-on-year, far exceeding its peers. Like Coca-Cola, McDonald’s has used price hikes to deflect higher costs and keep top-line growth in check, even as a stronger dollar hurt much of the company’s overseas earnings. McDonald’s also said that the final three months of this year’s product prices will be 15% higher than last year.
The energy crisis helped ExxonMobil’s third-quarter net profit hit a record high.
Thanks to high oil and gas prices, the world’s largest oil company, Exxon Mobil, posted a record third-quarter net profit of $19.7 billion, about three times what it was in the same period last year. CEO Darren Woods attributed the record performance to strong sales and tight cost controls. Chevron’s net profit, which released results on the same day, also increased by 83.6% year-on-year to $11.231 billion.
China Southern reported a net loss of about 6.1 billion yuan in the third quarter.
China Southern’s third-quarter revenue was 29.344 billion yuan, a year-on-year increase of 9.01%; its net loss was about 6.099 billion yuan, a year-on-year increase of 3.26 times. The financial report stated that the loss was mainly affected by multiple unfavorable factors such as the epidemic, high oil prices, and the devaluation of the RMB. Among them, the revenue composition disclosed in the newspaper shows that the main business passenger transport accounts for 65%. In the first three quarters of this year, China Southern Airlines has accumulated losses of 17.587 billion yuan.
Vanke’s home sales picked up in the third quarter.
According to the financial report, in the third quarter, Vanke achieved revenue of 130.76 billion yuan, a year-on-year increase of 25.3%; net profit was 4.83 billion yuan, a year-on-year decrease of 14.4%; contracted sales decreased by 20% year-on-year to 99.38 billion yuan, the decline narrowed compared to the second quarter. Vanke said in the announcement that the domestic commercial housing market in the third quarter performed better than the low point in the first half of the year, but the absolute transaction volume was still at a low level.
The iPhone 15 Pro may eliminate physical buttons.
Tianfeng International analyst Ming-Chi Kuo posted a series of speculations about the design of the iPhone 15 on his personal social media homepage on October 28. He speculates that the power button and volume button of the iPhone 15 may be designed with “solid keys” instead of physical buttons. This technology can identify the pressure in a designated area and simulate the feedback of physical buttons; in order to achieve better feedback, Apple It is necessary to add two Taptic Engine motors on both sides of the iPhone 15 Pro body, and the suppliers are likely to be Luxshare Precision and AAC Technology.
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