Home/Business/9 words of thought like Apple bags profit on big iPhone sales
9 words of thought like Apple bags profit on big iPhone sales
Durable phones make Apple healthy, rich and wise, but the dominant trade wars keep Tim Cook's CEO awake at night.
Apple is living in rude health, with third quarter revenue of $ 53.3 billion, up to 17pc last year. The company recorded a $ 11.5 billion profit, mainly due to the sale of high speed iPhone X devices.
As usual, Tim Cook's CEO rejected a little and he exclaimed at excitement about new products.
We're excited to report Apple's best June quarter ever, and our fourth consecutive quarter of double-digit revenue growth.
"Our Q3 results were driven by the continued strong sales of iPhone, Services and Portable, and we are very excited about the products and services in our pipeline."
The third quarter, or the June quarter, is traditionally Apple's quietest, which represents the longest time since the new iPhones were launched and just before the traditional September fanfare of new devices.
But this year was different, because in September last year, when the new iPhones were launched, the company revealed two new generations: the iPhone 8 and the mysterious iPhone X, which is the 10th anniversary of the launch of the very first iPhone by Steve Jobs in 2007.
1. Expensive iPhones sell like hotcakes
The iPhone has largely contributed to the third quarter with a revenue of $ 29.9 billion attributable to sales of 41,300 units. Although it is less than the previous quarter, where more than 52 000 units were sold, it represents an increase of 1 hp in units year on year and a 20 pc jump in revenue.
The average iPhone price hit $ 724 and hit analysts' expectations of $ 694.
In a merit call, Apple CEO Luca Maestri said customers bought more expensive models, with the $ 999 iPhone X which was the best seller in the third quarter.
iPad sales were 5pc in revenue, but 1pc in terms of units, probably due to the start of lower cost iPads.
Mac sales were 5pc in revenue and 13pc in units.
2. Cook has every reason to be excited about Q4
September is traditional when Apple publishes new products like iPhones and iPads, and if earnings are properly distributed, Cook expects serious revenue from the products.
The company predicts Q4 revenue of between $ 60 billion and $ 62 billion, which indicates some serious iPhone sales.
3. Apple is approaching a $ 1trn company
. The earnings of June's quarter were well received by the stock markets. Apple's market capitalization increased by 2.5 pc to a value of approximately $ 935 billion.
For Apple, the $ 1trn valuation point has been achieved, shares only need a 7pc boost and it's likely that it may happen in September when new devices are captured.
4. Other products are the dark horse in Apple's repertoire
Always check the category & # 39; Other Products & # 39; in Apple's financial statements. This segment includes devices like the AirPod cordless headphones, the stylish Apple Watch and the new HomePod smartphone speaker.
In the third quarter, Apple reported $ 3.7 billion in revenue from its other product portfolio, before analysts' expectations but off the
Cook said that the company's portable division, including Other Products, & # 39; excellent growth of 60 hp year on year.
"It reminds me of the early days of the iPod, when I was noticed everywhere," said Cook, referring to AirPods sales.
5. Services thrive
Apple reported strong growth in Services with sales from 37pc to $ 8.5bn in the third quarter.
Apple Music sales rose to 50pc as the revenue of iCloud services was.
Apple is aiming to double its services revenue from 2016 by 2020.
6. Trade wars can destroy Apple
Trump's continued trade wars are not good for businesses anywhere, and Apple is no exception. Cook warned that tariffs on goods that exceed the world could lead to unintended consequences for consumers and the economy.
"Our view on tariffs is, they show a consumer and upward tax, leading to lower economic growth, and sometimes it can give rise to a significant risk of unintended consequences." [19659003] The Apple Watch can be one of the first Apple devices that can be hit by the latest $ 200 billion US $ 200 billion of Chinese goods, possibly leading to a 10pc lead. import rate. "Like everyone, we evaluate that one, and we will share our views with the administration."
Cook said he hopes "calm heads rule" in trade negotiations.
7. Apple's repurchase of shares is giving water
"Our strong business performance saw revenue growth in each of our geographic segments, net revenue of $ 11.5 billion, and operating fluid of $ 14.5 billion," Maestri said. "During the quarter, we returned almost $ 25 billion to investors by repurchasing our capital return program in the quarter, including $ 20 billion in shares."
$ 20 billion! Think about it for a while: it's a lot of dough and brings back $ 43 billion of shares back to this year. It's no wonder investors beat their dollars and push the company for a $ 1trn valuation.
This is, of course, Trump's resigning US corporate tax cuts last year.
Mainly, Apple's repurchase of shares in the first half of 2018 alone exceeded the stock market value of almost three-quarters of companies in the S & P 500, including Ford, Delta Airlines and Twitter.
8. Apple plans to be a big noise on TV
Cook said Apple focused on expanding Apple TV and content production. In addition to renting Hollywood business types, the company also closed a content agreement with Oprah Winfrey.
"We hired two highly respected television executives last year, and have been here for a few months and have already worked on a project. We are not really ready to do not share … all the details about it, "Cook said. "But I could not be excited about what's going on."
9. Apple's war skis break at the seams
Apple's cash shoe is big. The company now has $ 243.7 billion cash on hand. It is $ 267.2 billion in March due to the launch of a $ 100 billion share buy-back program and a 16 percent dividend increase.
While Apple is often very savvy with its money and very strategic in its acquisitions, it is committed to helping with US economic growth and opening up purses of other efforts, such as the Winfrey Content Agreement.
Apple iPhone X Smartphone. Image: Hadrian / Shutterstock