Apple share price: 3 things we learnt from Q2 results
The tech company's Q2 results had three vital lessons for investors.
Apple share price is up after the corporation had a positive Q2 earnings report. Apple's Q2 profits proved three vital factors to investors.
Apple’s Q2 revenue was helped by products other than iPhones
Sales of devices like Apple Watch have helped propel Apple’s Q2 revenue in its services division to $11.4 billion.
Chief executive officer, (CEO), Tim Cook, touted the strong sales of Apple’s other products like the iPad and Apple Watch in Apple’s Q2 profits.
‘Our March quarter results show the continued strength of our installed base of over 1.4 billion active devices, as we set an all-time record for Services, and the strong momentum of our Wearables, Home and Accessories category, which set a new March quarter record,’ said Cook.
Cook touted the sales of Apple Watches after Apple’s Q2 revenue report.
‘Apple Watch is the best- selling and most loved smartwatch in the world, and produced its best results ever for a non-holiday quarter. It’s reaching many new customers, with three-quarters of purchases going to customers who have never owned an Apple Watch before,’ said Cook.
With iPhone sales declining year-over-year, Apple’s Q2 profits are dependent on other products to boost the company’s revenue.
Apple’s Q2 earnings were helped by improved international sales
Though iPhone sales are down overall, purchases did improve in China. Despite a ban on older models in 2018 because of a patent dispute conflict with Qualcomm, steep discounts on select models of iPhones and trade-in promotions in 2019 helped iPhone sales in the Asian nation. Cook noted that the discounts and possibly thawing relations between the US and China have boosted Apple’s Q2 results.
‘Our trade-in and financing programs have been well received there, and there’s an improved trade dialogue between the U.S and China, improving consumer confidence,’ said Cook.
Subscriptions helped Apple’s Q2 profits
In addition to strong sales from Apple devices, there was also growth in subscription services by 40% around the world. Cook touted the boom in subscribers to services like Apple Music.
‘We have 390 million paid subscriptions, all growing in strong double-digits. And we expect the number of paid subscriptions to pass half a billion in 2020,’ said Cook.
Apple Music has become so popular that its 28 million paid US subscribers top rival Spotify’s 26 million.
Apple’s Q2 earnings show that the corporation can succeed beyond iPhone sales with successful device sales and subscriptions to its services.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.