Apple did not have a record quarter

Apple sauceThe Tame Apple press did a number on analysts and their readers last week when they reported that Apple had produced record results.

Last week the Tame Apple Press reported that Apple had total revenues of $78.4 billion bringing in a profit of $17.9 billion, Apple CEO Tim Cook said he as “thrilled” with the results and Wall Street was happy, too.

However, those who do not want to sacrifice their analyst and journalistic credibility smelt a rat. After all, Apple’s tablet sales were slumping and Apple had not ordered so many of its disappointing iPhone 7s.

Market Watch spotted that for the first time since 2013 Apple had recorded a quarter of 13 weeks.

On a prorated basis, Apple would have needed to report earnings per share of about $3.53, higher than its reported EPS of $3.38 a share, to account for the extra week of business. Revenue should have been $81 billion versus the reported $78.4 billion, which was a miserable three per cent increase anyway.

Basically, most Apple fiscal quarters are 13 weeks long. Occasionally, however, they have a 14-week quarter. Apple’s Q1 2017 was a 14-week quarter, for the first time since Q1 2013. This means that Jobs’ Mob could add in the results of an extra week’s profit.

The only reason it seems as if Apple grew is that there was an extra week added to Q4 2016 results that was not there in Q4 2015. So the company had 7.6 percent more time to add to revenue and EPS, but instead the net result was a weekly run rate contraction of 4.11 percent and 4.76 percent, respectively.

This was also a period in which archival Samsung suffered greatly, and Apple had the chance to reap the rewards. But it didn’t. Total iPhone shipments climbed only five percent in the three months through December as Samsung issued a recall for its flagship Galaxy Note 7. Samsung shipped 77.5 million smartphones in the period, almost the same as Apple which is terrible news for Jobs’ Mob.

Analyst Thomas Kee said that Apple should have been making 10 times what it claimed it was earning and he thinks it is a good idea to get rid of the shares quickly before the market realises.

But that was not the only thing Apple did. A huge settlement benefit  hit the first quarter of FY16, which makes Services look even better – but doesn’t change the overall net – so everything is artificially inflated.