The stock market can be very unpredictable. However, Apple is one of the very rare companies that people can count on. The stock saw a growth of one percent when their earnings for the fourth quarter were released. Apple made $64 billion in the quarter. This was slightly more than $1 billion more than the company expected to earn. They did not sell nearly as many iPhones as they have in the past. However, Apple made money from many other revenue streams. They are also predicting that they will have a huge quarter with Christmas less than two months from now.
In a report by CNBC, the area of biggest growth for Apple during the fourth quarter was their line of wearables. This includes the AirPod earbuds. This accounted for more than $6 billion in sales for the quarter. Apple CEO Tim Cook said that the wearables experienced massive growth in all parts of the world. He also said they will be introducing new earbuds in the near future that will improve on the ones that are already available. Overall, Cook was very pleased with the quarter. However, he feels that the company still has many areas where it can improve.
Tim Cook said some interesting things during his earnings call. He said that their is a good chance that Apple will be able to beat their record for the biggest quarter they have ever had. This took place two years ago when the company made a little more than $88 billion. However, he did concede that a lot of things will need to go right in order for that to happen. He feels hat the iPhone and iPad will both be very big items during the Christmas season. He also said that the current trade war has not impacted Apple’s sales as much as people thought it would. Investors were very happy to hear this.
Services and subscriptions provided a huge boost to Apple’s revenue during the most recent quarter. For example, the company sold many AppleCare warranties. The iCloud also saw many people sign up for a subscription. Apple saw very big growth in iTunes for the first time in three quarters. There are currently well over 400 million paid subscriptions on the Apple platform as a whole. This has helped increase the overall revenue of the tech giant even though the revenue from the sales of devices like iPhones and iPads was down.
Dil Bole Oberoi
