Apple makes $1B commitment toward more US manufacturing jobs

Apple Pay

Apple makes $1B commitment toward more US manufacturing jobs

Apple's iPhone business is sailing squarely into the doldrums between new models. Still, it is interesting to see that Apple has managed to squeeze more money out of the iPhone while selling less.

India's continuously growing smartphone market proved an advantage for Apple as it recorded strong double digit growth for its revenues in the second quarter.

In the company's recent quarterly earnings call, Apple's CEO Tim Cook has blamed the pause in iPhone 7 sales over the increasing iPhone 8 rumours in the recent times.

Nevertheless, the data, which were released just after the close of Wall Street, as well as the explanations given by Cook and chief financial officer Luca Maestri did not convince analysts that much.

The strong Services performance came as Apple had an otherwise so-so quarter, with earnings exceeding analysts' expectations and revenue falling short of consensus estimates.

Shares of European suppliers of microchips, sensors and circuitry to Apple fell on Wednesday after the smartphone company's much-awaited iPhone sales missed expectations in the second quarter.

Of possible more concern to Apple's management was the slightly below par figure for Services Revenue from those locked in to Apple's heavily barricaded ecosystem.

This is an improvement for Apple India as, according to a report by Strategy Analytics, previous year "Apple iOS fell 35% annually and shipped 0.8 million smartphones in India in Q2 2016".

He noted that iPhone sales were better than the headline numbers suggest, as Apple reduced the volume of inventory going through its retail channel by about 1.2 million units in the quarter. The company said it will return more of that to shareholders, announcing $50bn in new buy-backs and a 63c dividend.

Sales in the company's services business - which includes the App Store, Apple Music, Apple Pay and iCloud - jumped 17.5 percent to $7.04 billion. The MacBook Pro 2016 with Touch Bar seems to have carried over well into the Jan to March quarter in terms of sales.

The tech giant forecast total revenue of between $43.5bn and $45.5bn for the current quarter, while analysts on average were expecting $45.60bn, according to Thomson Reuters forecasts. This marked the first full quarter that the new Pros impacted the bottom line and, in the realm of products, they did well.

Latest News