Apple Needs iPhone Prices to Stay Dialed Up

Apple could become the world's first trillion dollar company today

Apple's Market Value Is Approaching A Trillion Dollars: Report

Bloomberg reported that one reason for the high revenue is that Apple has been able to keep the average selling price of the iPhone above $700 for the third quarter running.

Analysts were eager for news from the California-based company about how the company is riding out trade turbulence between the USA and China.

Apple shares have climbed 12 percent since the beginning of the year, while the Standard & Poor's 500 index has climbed slightly more than 5 percent.

"Our view on tariffs is they show up as a tax on the consumer and wind up resulting in lower economic growth; and sometimes can bring about significant risk of unintended outcome", Cook said while fielding questions on an earnings call. "Each country needs the other to prosper, and the world needs both to prosper for the world to do well".

He said the company has had a "stellar quarter in services" with an all-time high revenue of $9.5 billion which he attributed partly to the double-digit growth in active installed base. That was driven by a higher average selling price of US$724, thanks in part to the iPhone X, which starts at US$999. They expect even bigger, fancier iPhones heading into the holidays.

Looking back at July, the Dow rose 4.7 per cent and the S&P 500 gained 3.6 per cent - their best monthly performance since January. Paid subscriptions have now passed 300 million, he also noted.

"Whether it grows 1 per cent or 2 per cent. or shrinks 1 or 2 per cent, it's a great market because it's just huge", Cook said.

Apple posted its financial results for the second quarter of 2018 (or the third quarter of its fiscal 2018) today.

It features a brighter screen that spans the device from edge to edge and boasts facial recognition technology.

The other notable success: Apple has also seen a strong increase in the amount of money it makes per sale of an iPhone.

Revenue from the app store, music subscriptions and other services grew 31 per cent to United States dollars 9.5 billion, a record for Apple.

At the moment, Apple is worth $935 billion. Ipad and Mac sales fell by single digits, compared to the prior year.

In the year-ago quarter (Q3 2017), Apple earned $45.4 billion in revenue. That's in line with the company's recent forecast and translates to year-over-year revenue growth of about 15 percent, the strongest for Apple's June quarter since 2015. Maestri told Reuters that sales from Apple Care, the company's warranty offering, were up 27 percent versus a year ago, though the company did not disclose a dollar figure for sales.

The Cupertino, Calif., company forecast revenue of $60 billion to $62 billion for its fiscal fourth quarter, which will include early sales of soon-to-be-announced phone models, beating the $59.6 billion analysts expected.

Analysts have learnt to look past Apple's third-quarter earnings to avoid any disappointment as consumers await the next iPhone upgrade, which is expected in September.

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