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While observers were still trying to put their eyeballs back in their sockets after Apple announced its gonzo Q1 results Tuesday, the company quietly filed its official 10-Q with securities regulators.
As usual, there are no life-changing disclosures in the quarterly earnings report submitted to the U.S. Securities and Exchange Commission. But the filing did contain a handful of interesting, if minor, revelations. Here are five for Apple fans to ponder:
1. iTunes media sales continue to crumble. Overall, Apple is seeing growth in its iTunes category, thanks to the App Store. But last fall, the company acknowledged for the first time that sales of media content had declined in its fiscal year 2014 that ended in September. In Q1 2015, the company said that growth in iTunes was “partially offset by a 7 percent year-over-year decrease in net sales of digital media consisting of music, movies, TV shows, and books.”
It appears that music and video-streaming services are taking a bigger bite. And it would seem that Apple’s hopes to compete with Amazon.com on e-books sales are also falling flat.
2. People are opting for more memory on their iPhones. Apple reported that average selling prices for the iPhone increased 8 percent in the first quarter from the same period a year ago. Why? In part because the iPhone 6 was pricier. But also because of “an increased mix of higher storage capacity.” Makes sense, since people want to take a gazillion photos. Also, if you don’t have a ton of memory, updating iOS is a royal pain because it’s grown so large.
3. People are buying cheaper iPads. It’s not bad enough that unit sales of the iPad fell 18 percent in Q1. People are also opting for lower-priced models, according to Apple. That’s part of the reason Apple says the average selling price for iPads fell 5 percent in Q1.
4. Japan hearts the iPad. Of Apple’s five geographic regions (Americas, Europe, Greater China, Japan, and Rest of Asia Pacific) Japan was the only one where sales of the iPad increased in Q1.
5. Capital expenditures are booming. The company spent $2.1 billion on capital expenditures in Q1 compared to $779 million for the same period a year ago. The money goes to new stores, manufacturing tools, data centers, and “corporate facilities.” (Side note: How is the new campus coming along?) World, take note: Apple is investing even more in its business.
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