iPhone Sales and China Revenue Down Again in Q219, But Apple’s Revenues Higher than Anticipated
August 05, 2019
Apple’s reported higher profit than expected and its shares rose 3% with iPhones sales rising slightly less than investors expected and Chinese revenue shrinking from a year ago. Putting a positive spin on the$1 billion acquisition of Intel’s smartphone modem business could lower 5G phone production costs but not until 2023/4, too late to turn around the sales slowdown. Apple’s highest-ever revenue for calendar Q2 was thanks to its wearables and highly profitable “services” segments. Revenue hit a record high. Apple’s plan to compete with Spotify’s recent podcast acquisitions – and the reportedly imminent release of its payment card – might give it an extra boost this quarter. In fact, Apple’s revenue forecast was higher than investors predicted.
Apple could yet be hit by further tariffs on the computer components it makes in China. Apple wanted to move production of the MacBook to China, because it couldn’t get parts, but Trump reacted negatively and now Apple is asking for tariff relief on those parts unique to China. Revoking the ban is one of China’s demands on the US as they resume trade negotiations, but investors’ hopes for progress are low. From: CNBC