![]() Cook said the company now has more than 1 billion subscribers to its services platform, up from 975 million last quarter. The company’s services segment, which includes Apple TV+, grew over 8%, to $21.21 billion, well ahead of analysts’ estimates of $20.76 billion. China’s gross domestic product grew just 0.8% in the second quarter and is on track to miss its stated growth goals for the second year in a row. The China sales figure “was especially welcome news considering the economic challenges the People’s Republic of China continues to face,” said Charles King, chief analyst at Pund-IT Inc. “We also set quarterly records in China for both wearables, home and accessories and services.” “This was really done by attracting a quarterly record of switchers to the iPhone, as well as having a strong upgrade activity,” Cook told Reuters. Apple doesn’t report regional sales by product. Total sales in the region rose 8%, to $15.76 billion, and reversed a 3% decline in the previous quarter. The brightest spot was in China, where Apple grew its iPhone sales by “double digits” amid a smartphone market that declined 8% overall, according to Maestri. “It’s a direct reflection of our ecosystem’s strength,” he said. ‘Uneven environment’Ĭook said the company is navigating an “uneven macroeconomic environment” but nevertheless set records in services, advertising, its App Store and music. The stock is still up more than 50% for the year. In initial after-hours trading, the company’s stock fell more than 2.7% following Chief Financial Officer Luca Maestri’s comments on the earnings call that fiscal fourth-quarter sales results would be similar to the quarter just completed, meaning a decline of roughly 1%. Chief Executive Officer Tim Cook (pictured) said nearly half of Mac buyers during the quarter were new to the product. ![]() ![]() Mac sales of $6.84 billion were down 7% but beat estimates of $6.62 billion, and iPad revenues dropped 20%, to $5.79 billion, against estimates of $6.41 billion. However, executives noted that currency fluctuations took about a 4% toll on revenues, meaning that iPhone revenue grew slightly in the quarter. On a product line basis, iPhone sales slipped 2%, to $39.67 billion, slightly below analysts’ estimates of $39.91 billion. Earnings per share of $1.26 beat expectations of $1.19 per share. Revenue fell 1.4%, to $81.8 billion, topping analysts’ expectations of $81.69 billion. beat modest Wall Street expectations for sales and profits in its fiscal third quarter, with strong iPhone sales in China helping compensate for a global decline in the smartphone market, but its third consecutive quarter of declining revenues was the longest losing streak the company has had since 2016. The author or authors do not own shares in any securities mentioned in this article.įind out about Morningstar’s editorial policies.Apple Inc. Turn our stock insights into action with a subscription to Morningstar Investor. ![]() Non-GAAP gross margin is expected to be 45.5% at the midpoint with the favorable mix shift toward chips going to Apple. The sequential growth should mostly come from Qorvo’s content gains within Apple’s upcoming iPhone 15 series of devices, while the firm also foresees the Android market continuing to work down inventory. Non-GAAP gross margin was 43% in the quarter, which was up 160 basis points sequentially but still down versus 50% in the year-ago period, mostly due to lower sales levels and factory underutilization.įor the September quarter, Qorvo expects revenue of $1.00 billion at the midpoint, which would represent growth of 55% sequentially but still a 12% decline year over year. ACG revenue fell only 1% sequentially, as the Android smartphone market appears to have bottomed out and Qorvo is reducing its excess inventory within the Android supply chain. All three segments (advanced cellular, or ACG connectivity and sensors, or CSG, and high-performance analog, or HPA) were all down close to 35% year over year, but the company saw strength in products sold to aerospace and defense customers. Revenue in the June quarter was $651 million, down 37% year over year, but up 3% sequentially and above the midpoint of guidance of $640 million. We maintain our $128 fair value estimate for no-moat Qorvo and view the shares as slightly undervalued. Management also affirmed it is on track to reach its fiscal 2024 targets, including annual growth despite the slow start to the year. More importantly, Qorvo provided investors with a rosy outlook, thanks to upcoming content gains in Apple’s next slate of iPhones. Qorvo QRVO reported fiscal first-quarter results which, while dismal, came in ahead of our expectations. ![]()
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