Apple could become the world's first trillion dollar company today
- Author: Eleanor Harrison Aug 01, 2018,
Aug 01, 2018, 5:02
But on second glance, Apple's numbers tell an interesting story. iPhone sales were barely up compared to the same quarter a year ago, and at 41.3 million units sold, the analyst expectation of 41.79 million units was actually missed.
However, analysts said that a more relevant picture of Apple's health won't come until September with the launch of three new iPhone models, including a large-screen iPhone X, a more affordable model with a lower cost LCD display and a number of ancillary products.
In the case of this iPhone video from Tiger Mobiles, it's a lot of what we've already seen and heard about Apple's upcoming devices.
The maker of iPhones, iPads and other products posted revenue of nearly $53.3 billion in the period, also exceeding Wall Street forecasts. Of course, the iPhone still pulled down almost $30 billion in total revenue, but Services has rapidly grown from a minor segment of Apple's business to a major component. Even more impressive was the growth in revenue from services such as Apple Music and iCloud, which grew by 31% compared to the previous year.
The results had Apple CEO Tim Cook cheering: "We're thrilled to report Apple's best June quarter ever, and our fourth consecutive quarter of double-digit revenue growth", he said in a press release. That's inline with sales from Q3 2017, when Apple sold 41 million smartphones.
Analysts were eager for news from the California-based company about how the company is riding out trade turbulence between the United States and China.
The company, based in Cupertino, California, said its average iPhone selling price hit $724 (£552), beating analysts' expectations of $694 (£529). Analysts forecast US$9.2 billion.
Apple, meanwhile, has focused more on services such as the App Store and its entertainment businesses as growth drivers. Along with various online TV, news and publishing, gaming and cloud-hosting services, Apple is targeting $50bn in annual services revenues by 2020. Apple never really explains how specific products in that bucket contribute to the company's overall performance, but Cook did point out on the call the Apple Watch's growth was "in the mid-40s range" this quarter.
Apple is looking at whether it will be hit by tariffs on purchases the company must make, possibly "related to data centers", Cook said on a conference call with investors.
Apple Inc. projected sales that beat analysts' estimates, suggesting consumers continue to snap up the company's high-end iPhones, digital services and wearable devices like AirPods and the Apple Watch.
Also drawing positive scrutiny are Apple's "other products" which includes AirPods earphones and HomePod speaker systems.