Apple’s profit up 32% (no thanks to iPhone)
Nothing has changed… with iPhone sales compared to the same time last year. However, the company managed to post an $11.5B profit which is up 32% compared to the previous year. That increased profit despite flat iPhone sales is very good news to investors because it shows that Apple isn’t putting all of their eggs in one basket. After all, how many first-time iPhone buyers are there at this point?
Everyone has an iPhone… so why not convince these people to use Apple Services? That is what they did, and the App Store, Apple Pay, and AppleCare were up 30% from a year ago with $9.5B in sales. Also, the $999 iPhone X has been the top-selling model since launching in 2017. If you can’t sell more iPhones, how about selling more expensive ones?
The first $1 trillion company… not yet, but Apple is getting close. With the positive news on Tuesday, the tech giant’s stock rose 3% in after-hours trading. The tech sector has been running into problems, but Apple has managed to steer clear and head toward the money – exactly what we like to see.