Apple Shines

Apple's quarterly results

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What's going on?

Apples quarterly results didnt fall far from the American tech stock tree late on Tuesday: it reported higher profit than expected and its shares rose 5%.

What does this mean?

Sales of iPhones still Apples flagship product rose slightly less than investors expected last quarter, with Chinese revenue shrinking from a year ago. The company’s $1 billion acquisition of Intels smartphone modem business may help turn that around, lowering its 5G phone production costs and attracting new customers (eventually).


But Apples highest-ever revenue for this time of year was thanks to its wearables and highly profitable services segments. Revenue there hit a record high, despite a tepid response to the companys new magazine subscription service (tweet this). Apples plan to compete with Spotifys recent podcast acquisitions and the reportedly imminent release of its payment card might give it an extra boost this quarter. In fact, Apples revenue forecast was higher than investors predicted.

Why should I care?

The bigger picture: Apple may have eaten the forbidden fruit.


Other tech giants have paid fines for bad behavior lately, and Apple might also attract regulators scrutiny: a recent report alleges that the company displays its own apps above higher-ranked competitors in its App Store. Competition authorities in Europe famously fined Microsoft for preloading its software onto Windows computers, and have rapped Google for similar offenses on two separate occasions. Good thing Apple doesnt have a financial education app to knock ours out the charts, eh? ?



Zooming out: The trade war isnt bearing fruit for phonemakers.


Apple could yet be hit by further tariffs on the computer components it makes in China. Rival Huawei, meanwhile, has been blacklisted by the US, which may be to blame for second-quarter revenue growth that slowed dramatically from the first. Revoking the ban is one of Chinas demands on the US as they resume trade negotiations, but investors hopes for progress are low.

Originally posted as part of the Finimize daily email.

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