Apple Tops Earnings Expectations And Raises Revenue Forecast

Friday, 02 Aug, 2019

"Our active installed base of iPhone reached a new all-time high and was up year-over-year in each of our top 20 markets, underscoring the quality of our products and the satisfaction and loyalty of iPhone customers around the world", the Apple CEO informed. Apple had 4.53 billion shares outstanding at the end of last quarter.

Apple also lowered the price for channel distributors in China. The firm claims that Apple sold 11.5 million units in 2018, making it the year's best-selling smartwatch.

Apple posted $53.8 billion in revenue - an increase of 1 per cent from a year ago - setting record results for its fiscal 2019 third quarter.

Despite the downfall of iPhone sales, Cook voiced optimism about the company's performance in Greater China, as it posted "significant improvement" compared to the first half of fiscal 2019. This buyback authorization permits the iPhone maker to repurchase up to 7.6% of its shares through open market purchases.

It's not the first time that we have seen rumors of incoming iPhone stylus support; a year ago, the Chinese financial newspaper Economic Daily News claimed that the 2018 iPhones would support the Apple Pencil.

The sale of iPhones in that country was boosted by government stimulus, pricing moves by Apple, and trade-in and financing programmes, Cook said.

Sales in mainland China returned to growth mode in the quarter ending June 30, the company said during its earnings call on Tuesday. And we're seeing a growing engagement with the broader Apple ecosystem during the quarter.

While services were a standout for Apple, now the company's second-largest revenue line item after the iPhone, the results in the wearables, home and accessories segment was also strong, up almost $2 billion from a year ago.

The forecast helped propel Apple to a gain of as much as 6 percent Wednesday, the biggest intraday advance since May 1. The iPhone maker reported $2.18 earnings per share (EPS) for the quarter, topping the Zacks' consensus estimate of $2.10 by $0.08. "Wearables, Home and Accessories revenue rose 48 percent on robust Apple Watch sales".

Analysts had expectations of $53.4 billion.

"That being said", Zino added, "clearly we need to keep our eyes on the trade situation and what's at hand there". The segment includes devices such as the Apple Watch and AirPods. Still, the company doesn't appear poised to expand any of its new services to other platforms.

Fortunately, Apple did well in its other businesses - wearables and services, in particular - to offset the iPhone sales decline during the period.