Published: Thu, August 01, 2019
Tech | By Anita Cain

Apple’s Stock Climbs Despite Drop in iPhone Sales

Apple’s Stock Climbs Despite Drop in iPhone Sales

Apple's stock jumped 4% in after-hours trading.

Cook said Apple committed $21 billion to capital returns in the quarter, including $17 billion in share buybacks and $3.6 billion in dividend payments.

As per a fresh report by Bloomberg, Apple will add two-game-changing moves for its 2020 iPhones and this will feature cutting-edge technology that will be included in the iPhone 11. The company is also planning to release a new premium TV service called Apple TV+, which offers access to Apple original programming, and a subscription gaming service called Apple Arcade this fall.

"Investor expectations were pretty low going into the quarter, and the numbers beat in many segments, and the guidance was strong", said Shannon Cross of Cross Research.

"We are encouraged by the results we are seeing from the initiatives that we spoke about in January including strong customer response to our in-store trade-in and financing programmes, ' said Cook during an earnings call with analysts late Tuesday". Analysts estimated $2.10 a share. As far as rumours go, Apple is expected to release a 5.4-inch, 6.1-inch as well as 6.7-inch display next year while tech specs remains largely unknown.

First announced in March, the Apple Card will be tightly integrated into the iPhone, working as both a digital card in the Wallet app for use with Apple Pay and a physical titanium card that will be mailed to members for free. The trade war is also denting Chinese economic growth while souring consumers there on US brands. Those measures continued during the just-finished quarter.

The last time iPhone sales dipped below 50% of overall revenues was almost 7 years ago, in the fourth quarter of 2012. Mac sales jumped 11% and iPad sales rose 8%. In fact, by itself, the iPhone still generates enough revenue on its own to rank in the top 30 on the Fortune 500 list of the largest companies.

Great services quarter, unbelievable wearables quarter, significant progress on iPhone, and off-the-charts significant progress on China, compared to where we were the previous quarter.

Apple's wearables division, including Apple Watch and AirPods, is now bigger than the company's iPad business. The card won't have a normal 16-digit number, CVV code, expiration date, or personal ID on it. Right now, Apple Card is being tested by what the company says amount to thousands of employees, in a wide-scale beta before public access begins. Apple could still sell the luxury iPhone model for die-hards but freshen that version less often and focus on an even more mass market iPhone in the Pixel price range.

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