Apple mentioned very strong earnings to its investors during its quarterly earnings call. The company has proved wrong to the prediction of many industry analysts for the quarter by disclosing an increase of 17% in the revenue from last year.
If we talk about some of the recent months, the biggest success creator of Apple is its service business, which has iCloud, Apple Music, AppleCare, the App Store, Apple Pay and a lot more. The segment experienced a rise of 31% as compared to the growth at the same time last year, and generates revenue of $9.54B.
Tim Cook, CEO, Apple, assured the company investors during the call, “We’re on the right path to accomplish our target of double the revenue of our service industry by 2020.”
The CEO as well shed some light on the concerns regarding the charges and the active trade spat between China and the United States. A lot of manufacturing of Apple devices is done in China, the market of China is the 2nd biggest segment for Apple when it is about the overall revenue, so due to the spat, the company can face some impacts in future.
Though, to this Cook stated, that the existing fees, like the one which the United States put on the aluminum and steel business, is not going to directly impact the company’s endeavors. However, there are other tariffs which can have an impact, but Apple CEO is quite positive about this and feels that the nations will find the way out of this.
He added, “Both the nations (US and China) have inescapable mutuality.” Each one requires the other to grow, and it requires both nurturing and growing well, which ultimately make a prosperous impact on the global economy.
Considering the future, Apple supposed to reach the revenue of $60B for the next quarter.