Apple's upbeat forecast pushes market value back toward $1 trillion

Apple's upbeat forecast pushes market value back toward $1 trillion

Nonetheless, it beat Wall Street analysts' estimate of $2.36, according to Thomson Reuters data. Apple spent a record US$27 billion on share buybacks and dividends during the fiscal second quarter.

Apple iPhones account for less than 1% of the Indian smartphone market, largely dominated by vendors such as Samsung and Xiaomi. The company posted quarterly revenue of $58 billion, a decline of five per cent from the year-ago quarter. Revenues in the Americas were slightly higher, while Europe and the rest of the world showed slightly lower revenues.

The news comes on the same day as Apple announced it generated $31.05 billion from its iPhone range, down from 2018's figures. Total product sales - which includes the iPhone, iPad, Mac, wearables, home and accessories segments - came in at $46.6 billion, compared with $51.2 billion in the same quarter past year.

Guidance for Apple's fiscal third quarter was higher than expected, suggesting Apple's iPhone demand machine is stabilizing again and that services revenue continues to grow.

The Apple news of the day was that the company had, in its most recent quarter, its best performance to date in its services segment.

Cook said the company has 390 million paid subscribers across its current services. Instead, the company disclosed on its Q1 2019 earnings call that its global install base includes 900 million iPhones - and today's earnings report shows that the company's install base is comprised of 1.4 billion devices.

Addressing the question on trying to really aggressively ramp up share in India, Cook told investors that India is a very important market in the long term for Apple, even if it is a challenging market now. That's the reason why Apple shares surged even if its core product sales recorded a double-digit year-on-year fall. Until then we must see how much Apple's will increase the flagship prices.

The latest results "will be a major sigh of relief for investors and give the bulls another feather in their cap heading into the next few quarters", said Daniel Ives of Wedbush Securities.

Describing India as a "challenging market in the short-term", Apple chief executive officer Tim Cook said the company plans to make a foray into the Indian market with "all of our might" through its retail stores and manufacturing capability. More than half of the iPad buyers last quarter were down for the first Time an Apple Tablet, stressed Cook. Apple has now included a new model of the more expensive iPad Pro in the offer.

Apple is widely expected to launch three iPhones this year, the direct successor of last year's iPhone XS, iPhone XS Max, and iPhone XR.

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