Apple reports second quarter results

Original Article ↗ Hacker News Discussion ↗

Financial results and business mix

  • Q2 revenue about $111B (+17% YoY), EPS about $2 (+22%), record March-quarter cash flow (~$28B).
  • iPhone ($57B) and Services ($31B) are standouts; Services help smooth cyclical hardware revenue.
  • Some argue Apple is shifting away from hardware dependence; others note ~72% of revenue is still hardware and Services would not exist without device sales.

Product lineup, pricing, and hardware availability

  • Debate whether Apple is increasing complexity with more tiers (e.g., budget to “Ultra”) vs still mostly a “good–better–best” ladder with a few niche devices.
  • Larger customer base and better targeting algorithms are seen as making more SKUs manageable.
  • Complaints about certain Macs (Mini/Pro/Studio) being out of stock; some see this as evidence of supply constraints, others as a “good problem” indicating strong demand.

Vision Pro, EV project, and product strategy

  • Mixed reactions to rumored Vision Pro discontinuation: some lament a lost future for AR/VR media/productivity; others note these are only rumors and stock overhang.
  • Critique that Vision Pro lacked open I/O and full-computer capabilities, limiting use cases.
  • Many regret the cancellation of Apple’s car project, seeing lost opportunities in EV competition and battery tech; others say a car clashes with Apple’s low-complexity, few-moving-parts philosophy.

Services composition and App Store issues

  • Services growth attributed mainly to:
    • App Store commissions, especially from mobile games.
    • Google search default payments via Safari.
    • iCloud and Apple One bundles, AppleCare, etc.
  • Concerns that calling App Store fees “services” is misleading.
  • App Store 30% cut seen as “license to print money”; some users still prefer App Store billing for trust and centralized cancellation, while others actively seek cheaper web payments.

Capital allocation, R&D, and fabs

  • $100B more in buybacks and small dividend raise (4%) draw criticism from those wanting massive R&D or new categories (batteries, EVs, e-bikes, new OS).
  • Others argue there are diminishing returns to adding headcount and that big software teams already struggle.
  • Disagreement over whether Apple must build its own fabs to secure chip supply; some see dependency on TSMC as risky, others note in-house fabs can become uncompetitive and that current arrangements work well.

AI strategy

  • Apple is viewed as avoiding the expensive “AI arms race,” instead licensing models (e.g., Gemini) and focusing on profitable hardware/services.
  • Some think Apple can later buy distressed AI assets or run strong local models on Apple Silicon, gaining a late advantage; others see competitors “eating their lunch” in AI for now.

Ecosystem, OS future, and enterprise

  • Debate over whether Apple should invest in a post-Mach/post–macOS/iOS OS, inspired by concepts like HarmonyOS’s cross-device fabric, vs claims there’s no reason to migrate given current systems work.
  • Skepticism that Apple will seriously compete with Microsoft 365/Google Workspace or pursue broad enterprise SaaS, given its platform-focused, consumer-centric approach and weak web productivity tooling (e.g., limited iCloud.com editing).