Economy

Apple has just lost its $1 trillion company status

Apple has just lost its $1 trillion company status”

The new programme will include the iPhone 5 and other Apple products that are "about to become obsolete".

On 30 October, the company presented a new Macbook Air, the iPad Pro and mini desktop computer Mac Mini.

In August, the tech giant became the first $1 trillion publicly traded USA business, a milestone reached after it boosted revenue on higher-priced models such as the iPhone X. Yet just three months later, the company spooked investors by announcing it wouldn't disclose the closely watched iPhone sales figure.

Cook blamed weak currency for snail paced growth in emerging markets like India.

The dip in Apple's shares to $208.50 knocked around $67 billion off its value, and put Amazon and Microsoft Corp (MSFT.O) back in the mix in the race among the United States' big tech players to be the world's most valuable company.

This also led to the company's marketshare dropping by more than half to just about 1 per cent of the Indian market. It managed to recover, though: as at 6:50am in NY, it was at $1.073 trillion.

The timing for that announcement was curious, but there may have been a grain of truth in Maestri's reasoning: While unit sales were flat for the quarter, the average sale price of an iPhone rose to $793, signaling that consumers are getting more comfortable with spending money for the company's high-end phones.

In fact, the company reported that other parts of its product line-up were underperforming.

In the usual conference call immediately following the financial results reveal, Cook said that new fourth-quarter records were enjoyed in all geographic categories, adding that Apple Pay transactions tripled. Some talking heads will say that this is because Apple's growth is slowing, but it seems that the company doesn't think unit sales are the best way to look at financial results.

While the sales of all the three major products - iPhone, iPad and Mac - either declined or stagnated as compared to the year-ago quarter, Apple's revenue increased by 20% YoY in the fiscal fourth quarter 2018; largely due to the sales of high-end iPhone XS and iPhone XS Max. "We generated $19.5bn in operating cash flow and returned over $23bn to shareholders in dividends and share repurchases in the September quarter, bringing total capital returned in fiscal 2018 to nearly $90bn". At market close on Thursday, Apple shares were up more than 25 per cent for the year - supported by purchases by Warren Buffett and a $100 billion share buyback program - while the Nasdaq Composite Index is almost flat for the year.

Yesterday, Apple published its earning calls for fiscal Q4 2018. Services revenue hit a record $10bn in the quarter.



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