Wilbur sees a few holes in Apple’s recent financials, and despite the $1-trillion valuation, the only growth area of substance is Services. So what’s the problem?
iPhone and iPad grew at 1-percent over the same period a year ago. Mac sales were down over 13-percent. Apple is a hardware company and those hard numbers belie the truth. Hardware sales are not increasing in number. iPhone seems to be selling at higher prices than ever and that impacts profits, but total unit sales are mostly flat and have been for a few years. Apple sells hardware and hardware sales are not growing.
And Services are dependent upon hardware sales.