Published: Wed, August 01, 2018
Markets | By Erika Turner

Apple boosted by selling more expensive iPhones

Apple boosted by selling more expensive iPhones

What's propelled Apple's June earnings high and its ability to defy the challenges faced by rival tech stocks this quarter? iPhone revenue was higher than estimated.

Sales rose 19% during the quarter, to $9.55 billion, in Greater China, where Apple gleans about 20% of its revenue. This translated to diluted earnings per share of $2.34, compared to $1.67 during the same quarter in 2017.

However, this year the period was seen as a crucial test of the staying power of the iPhone X model, last year's overhauled device. Profit also topped Wall Street forecasts coming in at $11.52 billion or $2.34 a share.

About the only impediments holding Apple from $1 trillion are buybacks and dividends, which enhance the company's share price though doesn't necessarily enhance its overall market value. But for the past couple of years, even premium smartphones have lost some appeal, and consumers are holding on to their phones for longer between upgrades. Mac sales were down 13% at 3.7 million units sold. No one seems to care about that, because the average selling price of the iPhone rose significantly (all thanks to the iPhone X), so the money-printing machine is still roaring ahead as usual.

The US tech giant unveiled quarterly results revealing that iPhone sales had jumped to 41.3m, a slight increase on past year.

Apple ended the trading day with a market cap of $935.3 billion. -China trade disputes, but President Donald Trump has threatened hundreds of billions of further tariffs whose product categories have not yet been enumerated.

Manafort earned $60M from Ukrainian consulting work, prosecutors say
Gates has since pleaded guilty and agreed to help prosecutors with their case, as one of the government's star witnesses. In all, prosecutors say, more than $75 million flowed through the offshore accounts Manafort and Gates set up.

Apple, meanwhile, has focused more on services such as the App Store and its entertainment businesses as growth drivers.

"We're on target to reach our goal of doubling our fiscal 2016 services revenue by 2020", CEO Tim Cook assured investors on the call. The category includes AirPods headphones, the Apple Watch, Apple TV, and the HomePod. In February, Apple said it expected revenue of between $51.5 billion and $53.5 billion for the quarter.

Finally, while Cook expressed opposition to new trade tariffs between the U.S. and China, noting how they're anti-consumer, he said that Apple is continuing to see double digit growth in China along with other major markets. Cook said wearables were a highlight of the quarter, with sales up 60 per cent year over year.

After the markets closed in NY on Tuesday, the Cupertino, California-based iPhone giant reported a $11.5bn profit for the three months ending in June, up 32% from the same period a year ago.

The company projected that it would make $60 billion to $62 billion next quarter, exceeding analyst expectations of $59.6 billion.

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