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Why future projections for Apple are gloomy even after 38 per cent rise in profits

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San Francisco:  Apple announced on Tuesday its profits rose 38 percent in the second quarter due to a surge in iPhone sales.

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However, Apple’s Chief Executive Tim Cook expressed concerns over the rising competition. “The gap is widening between us and our competitors,” Tim Cook said in an interview with the newspaper, the Wall Street Journal.

Headquartered in Cupertino, California, the company earned $10.7 billion during this period, its fiscal third quarter, compared to $7.74 billion in the same quarter of 2014, equivalent to earnings of $1.85 per share, reported EFE.

It sold 47.4 million iPhones in the second quarter, 35 percent more than the same period last year and more than double from four years ago. iPhone sales in China too, more than doubled to $13.2 billion.

In total, iPhone sales contributed $31.4 billion, a 59 percent rise over last year, owing to an average $100 increase in their prices.

Apple Watch concerns?

The company did not share information on the sales of the Apple Watch, which they recently began to sell, although Cook said it exceeded internal expectations.

The gross margin of the company’s profit was 39.7 percent, as opposed to the expected 38.5 percent to 39.5 percent.

Apple shares, however, fell 6.7 percent in after-hours trading at Wall Street, owing to what analysts called gloomy projections for coming months.

The company forecast revenue of $49 billion for the third quarter ending in September, against analysts’ expectations of $51.13 billion.

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Tech Giant Apple Removes ‘Illegal’ Apps from App Store in China

Apple in 2017 announced it would invest nearly $500 million in China to build two new R&D centres in Shanghai and Suzhou

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Apple kills '25,000' illegal gambling apps in China. Flickr Commons

Apple has reportedly removed 25,000 gambling apps from its App Store in China that flouted the local Internet policies.

In a statement given to The Wall Street Journal on Monday, the Cupertino-based iPhone maker said “gambling apps are illegal and not allowed on the App Store in China”.

“We have already removed many apps and developers for trying to distribute illegal gambling apps on our App Store, and we are vigilant in our efforts to find these and stop them from being on the App Store,” Apple added.

The company, which recently touched the $1-trillion mark, reacted after China’s state broadcaster CCTV, accused the tech giant of not doing enough to screen out gambling and other illegal apps.

“Apple established its own rules for allowing apps on to its store but did not respect them itself, resulting in a proliferation of fake lottery apps and gambling apps,” the Financial Times reported, quoting a CCTV statement.

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In September 2016, Apple opened its first China R&D centre in Beijing’s Zhongguancun Science Park, often referred to as “China’s Silicon Valley”. Pixabay

Apple last year removed apps for virtual private network (VPN) services in China, used to circumvent Beijing’s censorship tools as well as hundreds of other apps, including Skype.

Amid heightened trade tensions between the US and China, tech giant Apple in July joined hands with its suppliers to launch a $300 million clean energy fund in China.

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The “China Clean Energy Fund” will invest in and develop clean-energy projects totalling more than 1 gigawatt of renewable energy in China, the equivalent of powering nearly 1 million homes, Apple said in a statement.

Apple in 2017 announced it would invest nearly $500 million in China to build two new R&D centres in Shanghai and Suzhou.

In September 2016, Apple opened its first China R&D centre in Beijing’s Zhongguancun Science Park, often referred to as “China’s Silicon Valley”. (IANS)

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