Apple Shines in a Gloomy Tech Earnings Season

Apple Shines in a Gloomy Tech Earnings Season

07/08/2018 7

In an otherwise gloomy tech earnings seasons, with giants such as Tencent, Facebook, Twitter, and Netflix having reported significant losses, Apple has managed to buck trend.

The iPhone maker surprised us with stellar quarterly results on Tuesday this week that beat all expectations. Its third quarter revenue stood at US$53.3 billion and profits at US$2.34 per share.

The company delivered on the back of solid sales revenue from its latest pricy product – the iPhone X. Substantial tailwind was also provided by subscriptions from Apple Music, Apple Store, and iCloud.

The chief financial officer of Apple informed that iPhone revenue jumped almost 20% from last year’s third quarter. And this helped the firm report better-then-expected earnings. This could also mean another more expensive iPhone model would be unveiled in fall this year.

Apple Bucks Trend in Plateauing Smartphone Market Too

With its earnings report, the California-headquartered company has bucked trend in one more area – a slowing smartphone market. Rival Samsung Electronics failed to achieve targets with its latest Galaxy S9 and Huawei Technologies ended up in the second spot. But Apple outshone all with its trailblazing high-end expensive phones and diversification into services.

However, Apple’s impressive numbers were solely a result of the higher price of their iPhone and not because of the sale of more number of units. When it comes to the latter, numbers were disappointing. Apple sold 41.3 million iPhones by the end of the third fiscal quarter which was 21% down from the earlier quarter and just a percent up from last year same quarter.

Apple sold almost 500,000 fewer iPhones than predicted by the Wall Street. The bottom line – when you sell super expensive products, you stand a chance of profiting despite smaller number of units being sold.

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  • Karl Powell

    Apple makes good laptops and phones but that's about it. They do not make anything that is cutting edge except their first phone. Apple is a brand that sells to people who are just brand loyal and want simple and easy to use devices.

  • Christine McKay

    They are just another greedy American corporation.

  • Brian Westwood

    This is incredible. Apple has become the first company to reach a market value $1 trillion.

  • Rebecca Cresswell

    Congratulations Apple !

  • Ashleigh Pettinger

    It was the iPhone that made it all

  • Stephen Thornton

    People should never underestimate Tim Cook.

  • Callum Mason

    Good article

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