Apple CEO Tim Cook announced a strong third-quarter Tuesday, saying the strong results were “driven by all-time record revenue from services, accelerating growth from wearables. We’re thrilled to report a return to growth and a new June quarter revenue record of $53.8 billion.”
Analysts had expectations of $53.4 billion. It also posted $2.18 per share, against analysts’ expectations of $2.10.
China is a wildcard for most businesses. Attempting to grow within the country and the ongoing U.S-China trade war has been a sticking point for most. Despite growing uncertainty, Apple has been weathering the battle on both fronts.
On the earnings conference call, Cook said, “The combined effects of government stimulus, consumer response to trade-in programs, financing offers, and other sales initiatives, and growing engagement with the broader Apple ecosystem, had a positive effect. We were especially pleased with a double-digit increase in services driven by strong growth from the App Store in China.”
MacDailyNews Take: Typical.
People tend to fear the worst. It almost never happens. – MacDailyNews, May 14, 2019
I’m cognizant that in both the U.S. and China, there have been cases where everyone hasn’t benefited, where the benefit hasn’t been balanced. My belief is that one plus one equals three. The pie gets larger, working together. — Apple CEO Tim Cook, March 24, 2018
At least half of the popular fallacies about economics come from assuming that economic activity is a zero-sum game, in which what is gained by someone is lost by someone else. But transactions would not continue unless both sides gained, whether in international trade, employment, or renting an apartment. — Thomas Sowell, June 14, 2006
When it comes to Trump, NOTHING happens “as much as many feared…”
Exactly. Nothing happens, period. Obstructionist McConnell helps see to that. Twit in Chief is too busy golfing and fundraising/profiteering to do anything productive. No reforms, no spending cuts, no reductions in government size, no focus on making good trade with allies, no closures of unneeded foreign military bases, no healthcare for all of any kind, no surge in infrastructure improvements, not a single coal miner saved, US manufacturers hurt massively by increases in metal prices. No tax returns to prove once and for all that Trump actually is working on behalf of Americans instead of foreign investors (no US bank will do business with Trump). No competent cabinet members left, no multilateral security reform, no reduction in nukes among crazy foreign dictators, no strengthening of US military, no improvements to veteran care. No fiscal restraint – now spending billions on US farmers for self-inflicted trade wars (hint: don’t make enemies of friendly trading partners before attacking the biggest supplier of tech goods that Apple and other US firms rely on.) Can’t even get any major improvements to NAFTA negotiated or signed by Congress. Promises made, promises broken.
Meanwhile at Apple: 1% revenue growth, no massive new investments in US production. Typical corporation focused on expanding sales to Chinese customers while doing as little as possible in the USA. That’s not at all what the current lame administration promised in its campaigns for more trickle-down tax breaks for corporations. Amidst what is touted by trumpanzees to be a strong economy, Twit demands Fed rate cuts to goose it. Taxpayers: brace yourselves. All the trickledown will have to be paid back in the future, with interest. Probably as soon as Trump resigns, like Shrubbery managed to pull off.
Apple critics will continue to push stories of how Apple will always see the worst of all companies in a tax war with China. I think that’s enough to keep big investors away from Apple. No one wants to get stuck with a loser and there are many who claim how Apple will always be the biggest loser because they already sell highest-cost products.
Although I’m a long-term Apple shareholder, I don’t trust how Wall Street values Apple. It’s just too easy for people to find fault with Apple’s value that they won’t find with other major tech companies. Apple never leaves that doomed region most likely because of the way the business is being run by Tim Cook. I’m not concerned about the doomed talk because as long as I get my Apple dividends, I’m good to go.