Economy

Apple quarterly profit leaps, nears $1 trillion value

Apple quarterly profit leaps, nears $1 trillion value

The company earned $2.34 per share on revenue of $53.3 billion for its fiscal third quarter, compared with EPS of $1.67 and revenue of $45.4 billion.

Things are pretty dire for Mac sales, which have slumped to a seven-year-low of 3.72 million.

Despite the beat, James Cordwell, an analyst from Atlantic Equities, said the high selling prices might cause investors some concern because "there's a limit to how much Apple can grow the iPhone franchise by pushing pricing".

iPhone sales came in slightly short of the expected 41.6 million units, at 41.3 million during what is typically Apple's slowest quarter for phone sales.

Apple's services revenue, which includes the App Store and Apple Music as well as iCloud and Apple Pay, brought in $9.55 billion, beating analyst estimates of $9.2 billion. In the last quarter, Apple's services made $9.5 billion, making it the second-largest business segment for the firm. 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. For those watching to see if Apple becomes the market's first trillion-dollar company today, the stock price will need to hit $203.46. The company closed the day with a valuation of $935 billionーits next closest rival, Amazon, ended the day at $867 billion.

The company said it expected gross margins of 38 to 38.5 per cent in the fourth quarter, compared with analyst expectations of 38.3 per cent, according to Thomson Reuters data.

More news: Polar bear killed after attacking Arctic cruise ship guard

It also reported earnings per share of $2.34, beating analyst expectations of $2.18.

Luckily, a long-underappreciated Apple division is coming to the fore: Services.

About the only impediments holding Apple from $1 trillion are buybacks and dividends, which enhance the company's share price though doesn't necessarily enhance its overall market value. However, Cook said that current tariffs, such as one the United States imposed on steel and aluminum, do not directly affect the company's efforts.

"We are not able to catch up to demand yet and continue to add capacity for the AirPods", Maestri said.

"We're thrilled to report Apple's best June quarter ever, and our fourth consecutive quarter of double-digit revenue growth", said Tim Cook, Apple's chief executive, in a press release.

Smartphones still drive an enormous portion of both companies' revenues and the devices are still projected to generate $78 billion in 2018, according to a new estimate from the Consumer Technology Association.


  • California Firefighters Work 48-Hour Shifts to Battle Deadly Blaze

    California Firefighters Work 48-Hour Shifts to Battle Deadly Blaze

    Wildfires across California have forced more than 50,000 people from their homes, said Lynne Tolmachoff, a Cal Fire spokeswoman. In all, more than 10,000 people were under mandatory evacuation orders from the two blazes in Mendocino and Lake counties.
    Facebook suspends profile of Infowars founder, says ban is 'close'

    Facebook suspends profile of Infowars founder, says ban is 'close'

    Within Facebook, the free-speech issues raised by Infowars and Jones have become an especially contentious topic. Variety reported that Facebook received reports on four different videos uploaded to Infowars' Facebook pages.
    USA  wants a fair trade deal, Donald Trump tells European Union  leaders - Ireland

    USA wants a fair trade deal, Donald Trump tells European Union leaders - Ireland

    USA import tariffs of 25% on steel and 10% on aluminium, implemented in March, will remain in place during the talks. Agricultural products were excluded from the planned negotiations on a tariffs agreement, she said.
  • Flight MH370 was turned around manually

    Flight MH370 was turned around manually

    The largely technical 400-page report also said "the team does not exclude the possibility of intervention by a third party". Despite a massive search in the Indian Ocean and the South China Sea, the wrekage of the plane has not been found.
    Vladimir Putin 'ready to invite Donald Trump to Russia'

    Vladimir Putin 'ready to invite Donald Trump to Russia'

    She also asked about his invitation to Putin to visit Washington. "Are you anxious about what is on the other tapes, Mr. The move revealed a fresh willingness inside the West Wing to execute the president's wishes to punish reporters.
    Giuliani: 'I feel sorry' for Cohen

    Giuliani: 'I feel sorry' for Cohen

    The president's usual allies are trying to help by treating Cohen as a traitor to the Trump cause, according to The Guardian. Cohen told associates that Trump responded with encouragement, the person said .
  • State AG Ferguson to file lawsuit over 3D-printed guns

    State AG Ferguson to file lawsuit over 3D-printed guns

    Lost on Handler, Moore, and Milano is the fact that 3-D printed guns have been around for years. Advocates say the files are protected by the First and Second Amendments in the U.S.
    Cohen wants gag order against Stormy Daniels' attorney

    Cohen wants gag order against Stormy Daniels' attorney

    But Avenatti said the women, who contacted him months ago, were " paid hush money prior to the 2016 election ". Avenatti, or have any interest whatsoever in cooperating with Mr.
    Is this the clearest legal danger yet to the Trump presidency?

    Is this the clearest legal danger yet to the Trump presidency?

    On Friday , the Commerce Department reported that the US economy grew at an annual rate of 4.1 percent between April and June. Net exports added 1.06 percentage point to the quarter's 4.1 per cent GDP growth rate, as exports rose strongly.
  • Zimbabwe Elections: I will not vote for ZANU-PF, says Robert Mugabe

    Zimbabwe Elections: I will not vote for ZANU-PF, says Robert Mugabe

    He lingered in his cardboard voting booth, his daughter at his elbow, and placed his three ballots carefully in their boxes. It is 16 years since the European Union and United States observers have been allowed to monitor elections in the country.
    Geraint Thomas wins Tour de France

    Geraint Thomas wins Tour de France

    Fellow Team Sky rider Chris Froome headed into this year's tour as the overwhelming favourite as he targeted a fifth triumph. You've just been unbelievable . "Now he's being repaid for all the years of hard work and sacrifice he made for the team".
    Hamilton secures pole in Hungary with astonishing drive

    Hamilton secures pole in Hungary with astonishing drive

    Lap 15: Raikkonen is the first of the frontrunners to pit but suffers from a slow stop after the rear-left is slow to connect. Lap 64: Highlighting how much time Raikkonen and Vettel are losing behind Bottas, Hamilton's lead climbs to over 20 seconds.