ZCZC
BCN-01,02,03
US-INTERNET-TELECOM-COMPUTERS-EARNINGS-APPLE
Apple quarterly profit leaps, nears $1 trillion value
SAN FRANCISCO, Aug 1, 2018 (BSS/AFP) – Apple said Tuesday that its profit
had jumped more than 30 percent to $11.5 billion in the recently ended
quarter, besting market expectations despite selling fewer iPhones than
analysts projected.
The news boosted shares in the tech giant in after-hours trading, putting
it ever closer to a history-making, trillion-dollar market value, even as
China’s Huawei knocked Apple off second spot in a tightening global
smartphone market.
Apple’s revenue in the fiscal third quarter soared 17 percent to $53.3
billion from the same period a year earlier on the back of sales of pricier
iPhones, online services and wearable devices.
“We’re thrilled to report Apple’s best June quarter ever, and our fourth
consecutive quarter of double-digit revenue growth,” chief executive Tim Cook
said in the earnings release.
Apple sold 41.3 million iPhones in the quarter that ended June 30, just
shy of the 42 million figure anticipated by analysts.
Shares in the Silicon Valley-based technology titan rose 4.03 percent to
$197.95 in after-hours trade that followed release of the earnings figures.
“Apple gave the Street and tech investors finally some good news” beating
earnings forecasts and predicting the current quarter will be strong, GBH
insights head of technology research Daniel Ives said in a note to investors.
To hit the trillion-dollar market value, Apple shares would have to climb
about five percent more.
MORE/HR/0904
ZCZC
BCN-02
US-INTERNET-TELECOM-COMPUTERS-EARNINGS-APPLE 2 SAN FRANCISCO
– No fan of tariffs –
Analysts were eager for news about how the company is riding out trade
turbulence between the US and China.
President Donald Trump’s trade wars include 25 percent US tariffs on $34
billion in Chinese goods, with more on the way, and steep tariffs on steel
and aluminum, which provoked Beijing and others to hit back with import
duties on US goods.
Cook said that Apple products have not so far been directly affected, and
that the company is evaluating the latest Trump move currently in a public
comment phase.
“Our view on tariffs is they show up as a tax on the consumer and wind up
resulting in lower economic growth; and sometimes can bring about significant
risk of unintended consequence,” Cook said while fielding questions on an
earnings call.
“All of this said, we are optimistic that this will get sorted out. There
is an inescapable mutuality with the US and China which serves as a magnet
bringing them together: each can only prosper if the other does.”
– Paying top dollar –
The company is expected to unveil new iPhone models in the fall, sticking
with its practice of releasing upgraded models ahead of the year-end holiday
shopping season.
Sales of iPhones in the fiscal third quarter have typically been tame as
many fans have historically either bought handsets in prior months or end up
waiting for new models in the months to come.
That said, the average selling price of iPhones jumped in the quarter as
buyers opted for top-of-the-line X and 8 models, according to Apple.
“If you look at the top of our line together, they are growing very
nicely” Cook said.
“IPhone X shows that when you deliver a great innovative product there are
enough people out there that would like that and it can be a very good
business.”
But the good news was slightly tempered after latest figures showed China-
based Huawei took the second-place spot from Apple in a tightening global
smartphone market during the second quarter of this year.
MORE/HR/0906
ZCZC
BCN-03
US-INTERNET-TELECOM-COMPUTERS-EARNINGS-APPLE 3 LAST SAN FRANCISCO
South Korean consumer electronics titan Samsung remained the top
smartphone maker, shipping 71.5 million handsets, but Huawei moved into
second position with shipments of 54.2 million, according to IDC Worldwide
Quarterly Mobile Phone Tracker.
The 41.3 million iPhones shipped by Apple gave the company 12.1 percent of
the global market compared to 20.9 percent for Samsung and 15.8 percent for
Huawei.
It was the first time since early 2010 that Apple wasn’t in one of the top
two spots in the smartphone market, according to IDC.
– Shining despite bruises –
Apple has managed to shine, despite bruises to its image that included
being accused of keeping young people addicted to smartphones, slowing
performance of older iPhones to motivate upgrades and sidestepping taxes by
nestling cash in offshore havens.
Apple has repeatedly highlighted the growing amount of money it is taking
in from music, applications, games, subscriptions and services it sells to
people using its devices.
Money made from services is seen as an important element of
diversification away from having to rely heavily on selling iPhones.
Cook said the number of people using Apple devices is surging, and that
promised to keep fueling the strong growth seen at its streaming music,
digital wallet, and App Store.
“We couldn’t be happier with how things are going given the momentum we
are seeing across the board,” Cook said.
“We feel great about our current services and are thrilled about our
pipeline with some new services as well.”
BSS/AFP/HR/0908