No matter the facts, spin is used by every company and media outlet to put either a favorable light on that which isn’t all that favorable, or, it’s used to paint a picture that isn’t quite representative of truth and facts. Yes, dear friends. Even Apple spins.
Truth Or Dare?
Apple’s third quarter financials are out and they paint a pretty picture. That is, if you don’t look too closely at the fine print.
The company sold 31.2-million iPhones, a new record and over five million more iPhones sold than the same period last year.
That’s good news, right? Especially since revenue was up from a year ago. What’s the bad news? Profits were down this quarter from last year.
Even worse, iPad sales were down almost 2.5-million units from a year ago, and the Mac had sales this quarter that were less than last year at the same time.
What’s going on? Well, to be fair about it, Apple is making money hand over fist. Again. But just not as much. Expenses are up significantly, gross margins are down, and competition remains intense as Apple’s competitors have one fire sale after another to reduce the inventory glut of their slow selling smartphones, tablets, and PCs.
Despite the financial news being relatively decent, Apple’s spin is decidedly against the facts of dropping margins, and lower sales for iPads and Macs.
Instead, Apple spun it this way. Record iPhone sales. Strong growth in iTunes, Software, and Services. Say what, Kate? Yes, Apple is now
talking spinning the good news about everything related to iTunes– music, TV shows, movies, apps.
How do Apple’s numbers compare to the competition? Well, actually, that’s the good news. Everybody else except Samsung is bleeding, leaking, or stumbling, and that includes Microsoft, Google, BlackBerry, HTC, and every PC maker except Apple.
In other words, it’s a jungle out there, and business is so competitive, especially at the low end, that Apple is impacted by the fire sale mentality. Remember, Google, Samsung, and Amazon do not announce sales for their respective smartphones or tablets (instead, they talk about ‘shipments’ or percentage increases; but not actual sales). Microsoft won’t say much about Windows Phone, either, and just wrote down about a billion dollars on the failed Surface tablet.
Bad news is sometimes bad because of the theory of relativity. Apple’s bad news is good news relative to everyone else’s bad news, and that’s the spin the company is putting on the numbers.