Apple shares flirt with $1 trillion valuation on China sales uptick

Friday, 03 May, 2019

Apple has wrestled with a slowdown in iPhone sales in key markets such as China and saw its first ever year-over-year decline in iPhone revenue for the holiday shopping season.

"It's growing very, very fast Mike [Mike Olsen, the Piper Jaffray analyst who asked the question]". Apple has stopped reported iPhone unit sales. As with prior quarters, Apple highlighted waning demand in China and increased competition.

Apple surpassed a $1 trillion valuation in intraday trading on Wednesday after strong revenue growth from services such as Apple Pay and iCloud fueled the iPhone maker to better-than-expected results.

Mac sales also suffered a decline because the company "faced some processor constraints in the March quarter", Tim Cook said in the earnings call, further adding that "we believe our Mac business would have been up last quarter without those constraints". "But I think the growth potential is phenomenal", Cook told the analysts as Apple posted a revenue of $58 billion for its second quarter of 2019.

Apple Inc. on Tuesday reported fiscal second-quarter profit of $11.56 billion United States, a decline of five per cent from a year earlier but still better than expected.

The company's services revenue grew 14 percent to $11.5 billion, versus $9.9 billion in the second quarter of 2018. Apple's stock rose over 5 per cent in after-hours trading. Leading up to today's earnings report, analysts on Wall Street were anticipating revenue to fall somewhere in the $57 billion range and EPS to fall around $2.36. Apple had 390 million paid subscriptions during the three months.

Apple has announced more storming results for its wearables segment, with a record-breaking quarter for the Apple Watch. Meanwhile, services, which includes everything from app sales and Apple Music to iCloud storage and all sorts subscriptions purchased through iTunes, went from 16.1% to 19.7% in just one year.

As a point of contrast, Apple during the same quarter past year posted revenue of $61.1 billion and EPS of $2.73. The company has set a goal of 500 million by 2020.

Everything that we do, does advise everything we do in the future so we try to learn the best we can and fold that into our thinking. Meanwhile, iPad revenue jumped by more than 20% year-over-year. Even with Apple continuing to give back money to its shareholders, it said it ended the quarter with a net cash balance of $113 billion. While Apple had used Qualcomm chips for years in its phones, it avoided doing so in its latest lineup due to the litigation.