Sci-tech

Record services revenue lets Apple plot future beyond iPhone growth

Record services revenue lets Apple plot future beyond iPhone growth”

Two other analysts estimated Apple would sell about 40 million iPhones in the current quarter, based on Apple's June quarter revenue forecast of $51.5 billion to $53.5 billion and shares in Apple parts suppliers were also broadly higher. Wall Street was said to be in "Full Panic Mode" over Apple.

Apple purchased $23.5 Billion of stock in the quarter ended in March and claimed that it aimed to increase its dividend 16%, in comparison to a 10.5% increment in 2017.

Synovus's Morgan recently estimated that services will drive about 60% of Apple's revenue growth over the next five years.

CEO Tim Cook said that the consumer electronics giant has set a new sales record in the first half, despite an overall slowdown in sales growth in India. After all, it likely can't increase prices much more and unit sales are nearly unchanged over the past two quarters from the prior year.

Apple also gave better projections for the third quarter than expected, giving investors more confidence in the company's long-term health at a time when its top smartphone rival, Samsung, said it expects demand for its high-end phones to soften. In after hours trading AAPL stock spiked as high as 4.2%.

Some analysts are doing an argument that Apple would be growing its buybacks and dividends in the aftermath.

But now Apple is eyeing more products and service headed towards India.

But all this has not affected the revenue collection of Apple which according to the report has hiked up by fourteen percent.

Mr Cook said Apple had the three top-selling phones in China and brushed aside concerns about how a brewing tariff fight between the United States and China, where many of its phones are made, could hurt the company.

The company also doubled the number of users and saw triple the transactions on its Apple Pay mobile payments service, Cook said, though no specific numbers were given.

Although Cook would not provide specific sales figures for the iPhone X, he stressed that the performance should be viewed as a sign of strength regardless of the details.

After a solid quarter that quashed most concerns about a slowdown, eyes will now turn to the next generation of iPhones to be launched in September.

One piece of data that doesn't seem to jive with Cook's comments about the premium priced iPhone X, is the Average Selling Price of iPhone units sold during the fiscal second quarter. Analysts believe the heavy emphasis on buybacks will bolster share prices, but some investors wished Apple had found different uses for the cash. He called the phone a "Super Bowl victor", and said that Apple couldn't be prouder of the device.

"My own view is that China and the US have this unavoidable mutuality where China only wins if the USA wins and the US only wins if China wins", Cook said."So I'm a big believer that the two countries together can both win and grow the pie, not just allocate it differently and so that's our focus over time I think that view will prevail". Commenting on the sales of iPhone X, Tim Cook, CEO of Apple, said, "customers chose iPhone X more than any other iPhone each week in the March quarter".

The company is the world's second largest smartphone manufacturer behind Samsung and with a clear lead over third-placed Huawei.



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