Apple falls below $1tn despite revenue and profit rise

Apple falls below $1tn despite revenue and profit rise

Apple Inc. gave an underwhelming forecast for the key holiday period, suggesting weaker-than-expected demand for the company's pricier new iPhones. Its shift up in prices, with many iPhone models costing around $1,000+ seems to be paying off in some parts of the world.

In a transcript of the earnings call posted on the Seeking Alpha financial blogging site, Apple CFO Luca Maestri explained how the recent tie-up with Salesforce would help the company provide a unique experience for users who access the Salesforce app from iOS. Investors, and price-conscious consumers alike, will both wonder how much more Apple can charge for future iPhones and iPads to keep sales growth humming along. They plunged further by 7% during the day's trading.

The trend is indicating a colossal problem Apple has to deal with, and the company has made a decision to opt more damaging strategy to deal with - hide it! "Among customers around the world purchasing iPads during the quarter, almost half were new to iPad, and our active installed base of iPads reached a new all-time high", Maestri said. As we talked about a few days ago, the Services segment of Apple's business has seen a tremendous growth over the last year and has reached $10 billion in revenue, more than a 25% increase year-on-year. A simple calculation shows that on average, each iPhone sold brought Apple $793 in revenue.

The latest report offers some positive news for Apple in growing its services such as streaming music and Apple Pay, allowing the company to diversify its revenue stream in a saturated smartphone market. Apple has also been trying to diversify its revenues away from device sales by offering additional services to its customers. Earnings per share came in at $2.91, topping the average estimate of $2.79 among analysts surveyed by Zacks Investment Research.

More news: Mourinho: Manchester United will be in top four by December

Apple shares were down 6.4 pct at $208.05 before the bell. 'Other Products, ' which includes Apple TV and the Apple Watch, was up 31 percent to $4.23 billion.

At that event, the Apple boss was bullish on the future of the iPad, but the latest figures show tablet sales for the firm were down 6% on this time a year ago, with revenue down 15%. However, on a year-to-year basis, there was a six per cent decrease in the number of iPads sold, from 10.3 million in Q4, 2017. That's a nice jump for a category that saw its lowest sales numbers since 2010 in the third quarter.

Q4 unit sales increased 20 percent year-over-year, or 18 percent sequentially.

Apple, however, still has no timeline on the launch of its retail stores in India.

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