Luca Maestri exposes Apple's topicality and growth at a Goldman Sachs conference
Yesterday, Luca Maestri, Chief Financial Officer of Apple, who is in charge of the company's economic and financial planning, spoke at the Technology and Innovation conference at Goldman Sachs.
In that interview he discussed a series of topics reiterating what he said during Apple's Q1 last month . This interview can be heard on the website of Apple Investor Relation , but below we will tell you the highlights.
What was talked about in that interview?
One of the points that were discussed in this interview was referred to the iPhone's sales growth , why fewer units were sold than expected in the last quarter. The CFO responded by saying that sales have rebounded, and are mainly due to the high demand of the Plus model of the iPhone
This demand would be given by the fact that the 5.5 "model includes the double camera, which the 4.7" does not include, and is one of the most brilliant features of the new iPhone.
Regarding the company's overall growth, Maestri said that Apple is growing in large part by emerging markets, although in some of them its market share is very low.
Where more focused was on the Chinese market , which held high expectations, but disappointed Apple. From 2010 to 2016, the market share increased from 3 billion to 48 billion dollars, growing in these last two years 50% of the total.
In the future, the apple service sector will represent great potential for them in China.
Apple focusing on the services sector
As hardware production slows, Apple has been able to focus more attention on the services sector, which includes Apple Music, iTunes, the App Store and original content, such as the upcoming Planet of the Apps .
According to Maestri, "Today's services are the size of a Fortune 100 company, but we plan to double it over four years . " It is not yet known in what way, but trends point to the App Store and Apple Music .
"The App Store is amazingly good. The quality and quantity of content continues to improve all the time. With music, it is important to keep in mind that we are by far the biggest player in digital music. When you combine our download model with our streaming service, which comes from the acquisition of Beats and is gaining popularity. With the combination of these two businesses, we are clearly number one in music. We have been associated with music for a long time, and it is one of the most important use services for customers in our devices. We really want to offer the best popular offer and we think we're really doing that, "said Luca Maestri.
R & D
A question that aroused great interest was about the margins that the company has, Maestri explained that they usually have margins of around 38-40%. "We have a good track record of managing all aspects of the business."
Maestri indicated that they are contributing a bigger budget in everything related to R & D since previously it was used mainly to suppliers. By increasing their portfolio, they can now dedicate it to investing in services.
"Today we do a lot more internal development of some fundamental technologies than we used to do a few years ago, when we dedicated it to the supplier base, we work around processors or sensors.
It is very important for us because we can drive innovation, we can better control time, cost and quality. We see that as a great strategic investment. "
Apple Watch, AirPods and Apple Campus 2
Turning to the Apple Watch theme, Apple's CFO said that had it not been for high demand for this product in recent months, sales data would have improved. Even so, the wearable Apple has obtained its best data in this last quarter.
Something that has also boosted its profits was the fact of acquiring the company Beats, since that has made them gain popularity in the music sector. Through their AirPods and Beats, they will boost and help the industry become big business.
And to close the interview we talked about the Apple Campus 2 , which will have a large number of visits from curious regulars to the brand. It will become a place of worship and you still do not know how you can organize it.
Maestri emphasized that the purpose of this construction was to be respectful with the environment, adding to its design green areas and trees.
You know that if you want to listen to this interview - 42 minutes in length - you can do it from this link .