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Apple
Inc.
achieved its best-ever turnover in its weakest quarter, as demand for high-priced iPhones remains resilient and services such as in-store sales
Apple's third-quarter fiscal results show how the world's most profitable business is finding ways to expand in a shrinking global smartphone market and who shakes his rivals. and we are seeing strong double-digit revenue growth, and we are making significant progress towards our goal of significantly expanding our service business. "
Tim Cook
said during a call with analysts.
Although iPhone sales generally weaken in the spring and summer as the anticipation builds for new devices expected in September, Apple's chief financial officer
Luca Maestri
This demand has remained constant, especially for the iPhone X, 8 and 8. Plus
Apple's shares, up 28% over the past year, rose 3.7% to 197 $ 33 outside of trading hours. With a market value greater than $ 950 billion if after-hours earnings extend to Wednesday's trading day, Apple is on the verge of becoming the first US company to $ 1 trillion dollars
sales of the company's flagship product rose 20% to $ 29.91 billion, while shipments rose less than 1% to $ 41.3 million . The company's service business recorded a record business figure of $ 9.55 billion, up 31% over the previous year, comforting Apple in its transformation of 39, a device-based business towards a subscription and software sale.
Revenue growth accelerated for the seventh consecutive quarter, jumping 17% to $ 53.27 billion in the latest period, above expectations on Wall Street and close to top of its own forecasts. Earnings rose 32% to $ 11.52 billion or $ 2.34 per share, also above analysts' consensus estimates.
"The global business plan is on track"
Robert Nichols,
General Manager at Windward Capital Management Co., a Los Angeles-based company with more than $ 750 million in management, which counts Apple among its largest positions. "They created this device to push entertainment and data, and it's almost like having a cash register and we were expecting sales."
Apple's report closed on Tuesday a series of major profits from US giants.
Amazon.com
Inc.,
Google Parent
Alphabet
Inc.
and
Microsoft
Corp.
, which continue to show solid results in the face of increasingly scrutiny of regulators on their influence on business and society.
Facebook
Inc.
Last week, it suffered a record loss, after warning of a slowdown in growth due to new regulatory pressures and public scrutiny of its privacy practices
. a bigger threat to Apple than its peers. The company relies on China for about a fifth of sales, making it vulnerable to potential Chinese government retaliation, according to commercial experts, and its iPhones would be hit by tariffs if President Trump persisted in a recent $ 500 billion threat Chinese export dollars to the United States
Apple was not affected by any US tariff on imports from China, but Mr. Cook said the company is pricing the planned tariffs for the potential commercial impact. He said that Apple will provide public comments after having had the opportunity to evaluate potential tariffs. Still, Mr. Cook said that he is optimistic "this will be settled because there is an inevitable reciprocity between the United States and China."
Apple is also facing criticism of Chinese state-controlled media, which has launched attacks against Apple. last week, with at least five state-backed outlets, including Xinhua criticizing the tech giant's iMessage service for not doing more to block spam messages. CCTV jumped on Tuesday, saying the Apple App Store allows illegal gaming applications.
Apple sales continue to grow in Greater China, up 19% to $ 9.55 billion. But new figures from Strategy Analytics, a market analyst, revealed that Huawei Technologies Co. of China overtook Apple for the first time as the world's second largest maker of smartphones, with 54 million devices shipped during the quarter of June.
The main rival of Apple,
Samsung Electronics
Co.
, remains the biggest seller of smartphones, but has struggled recently. The South Korean company, which also raised the price of smartphones to nearly $ 1,000, recorded Tuesday a sharp decline in its mobile phone profit, consumers holding devices longer and falling at higher prices. Its market share in China has declined while local rivals like Huawei are increasing sales.
Apple announced that it was forecasting strong iPhone sales for the current quarter, with revenue forecasts ranging between $ 60 billion and $ 62 billion. healthy growth of 14% to 18% over the previous year. Analysts say the likely leap reflects a small boost from the following three new devices that Apple is expected to release in September: an update of the iPhone X $ 999; the company's first oversized phone with an organic light-emitting diode, or OLED, screen; and a 6.1-inch LCD screen phone with facial recognition technology.
The new phones are expected to cost between $ 699 for the LCD and $ 1,099 for the handset more, according to UBS, analysts have estimated that the iPhone X of $ 999 accounted for a quarter of the total iPhones sold, which helped push average iPhone sales prices up by nearly 20% to about $ 724
. ] Given the sensitivity of consumers to higher prices of smartphones, future iPhone prices "will be important in the future," said
Mike Frazier,
President of Bedell Frazier Investment Counseling, a company based in Walnut Creek, California, with approximately $ 500 million under management. Apple is among the most important positions of the firm.
"The expectations are very high for the next launch of the phone and people will not want to pay a big price unless it's full of new innovative features." become one of the biggest growth drivers of Apple. The company is progressing toward its $ 50 billion annual business goal behind the growth of iCloud storage subscriptions, its streaming music service, and offers such as Netflix and HBO. The division, which includes Apple smartwatches and AirPods wireless headphones, also recorded another period of solid gains, with sales up 37 percent to $ 3.74 billion. The company does not bust smartwatch sales, but it is expected to increase its shipments by 14% this year to 20.2 million watches, according to International Data Corp., a market research company.
"This is a product category basically" The sales of iPads and Macs were the only weak spots for Apple, since the business turnover of both products fell by 5% over the the period."
Apple continued to weaken financial muscle during the period, repurchasing 20 billion dollars worth of shares. The company promised in May to spend a record $ 100 billion in redemptions. According to Loup Ventures, a research-driven venture capital firm, redemptions could advance Apple's stock by 24% over the next three years.
In January, the company announced a return plan of more than 250 billion dollars. After the review of the US tax, Mr Trump signed the law at the end of last year, forcing companies to pay a single tax of 15.5% on profits. Overseas held in cash.
Apple, who will pay Mr. Maestri said: "There is still a long way to go before the goal of monetary neutrality is $ 38 billion, and reduce the gap between the funds and the debt at $ 129 billion. in our share buyback program, "said Maestri.
Corrections & Amplifications
Apple's sales figure of iPhones sales rose 20% in the third quarter. An earlier version of this article incorrectly indicated the percentage increase.
Write to Tripp Mickle at the address [email protected]
