Apple built up his company by innovating. But lately it leaned on diplomacy.
Tim Cook, the Chief Executive of Apple, recently scored exports on the export of Chinese-made iPhones. The maneuver freed Apple to concentrate on companies, and things have been good lately.
A new, cheaper iPhone, which the company introduced in February, and a strong sale of apps and services helped to make the company $24.78 billion in quarterly profit, an increase of 4.8 percent compared to a year ago, Apple said Thursday. Sales of the company increased 5 percent to $ 95.36 billion.
Exceeded the results The expectations of Wall Street analysts for $ 24.37 billion in profit and a turnover of $ 94.35 billion. The company said it expected that the income in the current quarter would rise slightly, which ends in June. Shares fell more than 3 percent on the trade after the hours.
The steady performance of Apple was surrounded by turbulence. In just a few months, the company had to navigate with internal and external obstacles, including the failure of the long -awaited artificial intelligence system and the challenges of the punishing rates of the Trump administration on products made abroad.
During a phone call with Wall Street analysts, Mr. Cook said that the rates began to take his business. He estimated $ 900 million in costs in the current quarter due to rates, provided that the rates of those taxes remain the same and no new costs are being introduced.
Last month, shares of Apple fell after President Trump had imposed the rates of 145 percent on export from China, where Apple makes 80 percent of the iPhones it sells, as well as rates at other countries and Macs such as Vietnam. The rates knew around $ 770 billion of the market value of the company in four days.
Wall Street analysts predicted that Apple should increase the iPhone prices to $ 1,600, from $ 1,000. Some customers race to buy iPhones before the prices have risen, which is expected to help to elevate the sale in the current quarter that ends in June.
But three months after he personally donated $ 1 million to Mr Trump's inauguration, Mr. Cook the White House to relax his rates and convinced the Trump government to admit temporary.
Mr Cook said that Apple responded to the rates by renewing the Supply Chain to prevent rates for products in China. In the current quarter, he said that the company will compile the majority of the iPhones that are sold in the United States in India. Macs, iPads and AirPods are assembled in Vietnam.
“We will manage the company as we always have, with thoughtful and deliberate decisions,” said Mr. Cook. “While we look ahead, we remain confident.”
On Thursday, Apple said that the sale of iPhones, the most important company, increased by 2 percent to $ 46.84 billion for the quarter. The company increased the iPhone turnover by more than 10 percent in Japan, India and the Middle East, so that it claims the majority of smartphones in the world over a three-month period, according to counterpunt research, a market research agency.
The company continues to struggle in China, where it reported its sixth quarter of sales. The total turnover from the region was $ 16 billion in the quarter, by 2 percent lower than a year ago. It was the only region where sales fell.
“Everything is OK at the moment because no prices have been increased,” says Ben Bajarin, chief analyst at Creative Strategies, a technical research agency. “The question is: if there are more rates, what will happen?”
The company's business of the company, including sales of apps, Apple Music and Apple Pay, are exceeded devices. Apple reported income for the $ 26.65 company billion, an 11.6 Percentage increase compared to last year.
But the future of Apple's service activities is uncertain. In an antitrust case on Wednesday, a federal judge punished the company for his business practices and ruled that it could not collect a commission of 27 percent on app sales outside the App Store. Her order enables Apps to remove Apple from their company and to dampen one of the most important sources of income in the company.
Mr. Cook said Apple did not agree with the ruling and is planning to appeal.
In a separate antitrust case, Apple can lose $ 20 billion in service income that Google pays as the automatic search engine on iPhone -Webbrowsers. A federal court ruled last year that Google had broken the law to retain a search monopoly. This month he called on a hearing to tackle his illegal behavior, including remedies that can include limitations on Google's payments to Apple.
The device activities of the company are also confronted with questions. Last year Apple unveiled a generative AI system that is able to improve e -mails, summarizing reports and upgrading its virtual assistant, Siri. It promoted the system, which called the Apple Intelligence, as an important reason to buy a new iPhone. But in March the company attracted its advertisements that promote the functions and said that some would be postponed until later this year.
“We just need more time to complete the work, so they meet our high quality bar,” said Mr. Cook. “It takes a little longer than we thought. But we are making progress.”
