Published: Fri, May 03, 2019
Markets | By Otis Pena

Apple's $1 Trillion Valuation Is Further Away Than It Looks

Apple's $1 Trillion Valuation Is Further Away Than It Looks

Apple a few moments ago issued its earnings report for the March quarter and posted revenue of $58 billion, a quarterly profit of almost $11.6 billion, and EPS of $2.46.

The company posted quarterly revenue of U$58 billion, a decline of 5% from the prior year quarter, and quarterly earnings per diluted share of US$2.46, down 10%.

"We generated operating cash flow of $11.2 billion in the March quarter and continued to make significant investments in all areas of our business", added Luca Maestri, Apple's CFO. Sales of iPads jumped 22% to $4.9 billion, which Cook called out as "our strongest iPad growth in six years".

It seems that public interest has shifted away from iPhones, with Huawei and Samsung racing past Apple in the ranks for quarterly shipment sales. "Apple remains the iPhone company", Chatham Road Partners analyst Colin Gillis reminded investors in a research note. Apple had already been in the Christmas quarter, a decline of iPhone sales, especially in China, were taken.

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Ironically, he says the number of asylum-seekers and others coming to the southern US border continues to grow. It then quotes a woman from Honduras who was trying to get into the USA with her 5-year-old son.


Don't miss out on the latest news and information. These numbers are a noticeable dip year-over-year and saw Apple giving a lot more attention to the services division making an all-time high revenue of $11.5 billion for the company. "The smaller share of iPhone revenue indicates that Apple is getting more skilled at selling other hardware and software products to its installed base of 900 million iPhone users", CNBC said. "We wouldn't introduces services if we didn't think they could be meaningful". At an event in March, the company announced Apple News+, a news and magazine subscription program; Apple Arcade, a gaming subscription service; and Apple TV+, a TV-streaming subscription program. However, CEO Tim Cook said during the company's fiscal second-quarter earnings call that declines narrowed significantly in the final weeks of the quarter. It's not just iPhones which have had declining sales, even Apple's Mac computer lineup has seen a downturn.

Wall Street analysts' consensus estimates had projected Apple to report revenue of $57.37 billion and EPS of $2.36.

Last November, responding to a question on whether Apple was at a disadvantage in India compared to other markets in terms of ability to run its own stores and manufacture products, Mr. Cook had said he was bullish on the Indian market and was very optimistic about Apple's future growth in the market. "And so, we plan on going in there with sort of all of our might", said Cook.

Cook said Apple offered more than "the Blue Book" when people brought in older handsets to trade in. "For me, the driver for tonight's (share price) move is the dividend hike. and more importantly the $75 billion buy back".

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