AAPL REVENUE RISES – By Todd Horwitz, Bubba Trading.

 

Apple’s Revenue Rises

Apple Inc. countered another quarter of weak iPhone sales with strong revenue growth from its supporting businesses, the latest in a series of positive results from Silicon Valley’s tech titans.

Revenue rose 1% to $53.81 billion for the three months ended June 29, Apple said Tuesday, an improvement from back-to-back revenue declines in the previous quarters. Profit slid for the third straight quarter, dropping 13% to $10.04 billion, though per-share earnings of $2.18 exceeded analysts’ expectations.

Apple offset a 12% decline in iPhone sales during the period with revenue growth in every other area of its business, including iPad and Mac. Sales from services—a closely watched business that includes App Store sales, mobile payments and device insurance—rose 13% to $11.46 billion in the period, the smallest quarterly increase since 2015.

Moribund global mobile phone sales have led Apple to focus on accessories like the Apple Watch and growth in music, apps, gaming, video and a credit card coming in August. In mainland China, Cook said the overall number of Apple device users had grown in the fiscal third quarter, helping to increase the market for its services, whose sales were up by more than 10% there. “We actually grew in mainland China,” Cook told Reuters. “Non-iPhone revenue grew 17%. We grew in every category outside of iPhone.”

Mr. Cook has charted a new path forward, shifting the company’s focus from a business defined by hardware hits to one that aims to sell software and services. It plans to release new subscription services for original TV shows and videogames this fall, as well as a credit card in August.

Analysts say Apple’s plan for three iPhones—two with triple rear cameras and one with a double-rear camera—lacks the sizzling features that compel customers to upgrade, especially at prices of $1,000 or more. It isn’t expected to deliver features that drive upgrades until 2020, when analysts expect Apple to release its first iPhones with 5G chips.

Todd “Bubba” Horwitz

Financial Markets and Political Commentary
 

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About the author

Todd Horwitz - Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.