Apple's Market Value Is Approaching A Trillion Dollars

Ann Santiago
August 1, 2018

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. Sales of the iPad tablet grew slightly to 11.6 million while those of its Mac computers dropped to 3.7 millions. That was due to a 20% rise in the Average Selling Price for the iPhone, to $724. The three months ending in July are often considered the most "boring" quarter for Apple, with the holiday season behind it and many customers waiting for the newest set of offerings, usually unveiled in the fall.

The Cupertino, Calif. -based company benefited from a 31% surge in Apple's booming Services division-it includes ApplePay, iCloud, and AppleMusic-and continued growth for iPhone and China.

Overall, Apple reported higher growth in revenue for the 17th straight quarter with sales hitting $53.27 billion. 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. If it does, Apple will be the first United States company to pass the trillion dollar milestone. Samsung's performance underscored mounting concerns that Apple, too, would be victimized by a saturated smartphone market.

Also drawing positive scrutiny are Apple's "other products" which includes AirPods earphones and HomePod speaker systems.

Billions of dollars that Apple has been spending to buy back shares could help propel the company past the one-trillion-dollar mark for market value.

Apple shares climbed 3.9 percent in extended trading, to $197.75, giving the tech titan a market cap just shy of $960 billion. -China trade disputes, but President Donald Trump has threatened hundreds of billions of further tariffs whose product categories have not yet been enumerated. This translated to diluted earnings per share of $2.34, compared to $1.67 during the same quarter in 2017.

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

Apple's margins are facing pressure as it moves to put pricier components, such as OLED displays that show more vivid colors, into its products.

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

Gross margin for the quarter was 38.3 percent compared to 38.5 percent in the year-ago quarter, with global sales accounting for 60 percent of revenue.

Other reports by

Discuss This Article