Last night was held the regular quarterly conference of the Applein which the company reported for the last quarter. Financially, the quarter was successful for Apple (a record quarterly revenue manifested itself), here only the net profit decreased by 13%. And sales data for Cupertino again not reported.
Nevertheless investors responded positively to the new quarterly report from Apple. During the conference, the stock price of Apple in the previous auction grew by 4%.
Shares of Apple before bidding
In fact, the growth rate of the stock was for many unexpected. First, sales of the iPhone brought Apple less than half of the quarterly revenues for the first time since 2012. Also, the highest sales growth showed wearable devices, home electronics, accessories and services that turns Apple into a software company, not just a “producer of iPhones”. Perhaps this is the place to be another factor.
It so happened that after Apple about your quarter reported its main competitor — the South Korean company Samsung. Its revenue decreased by 4%, but net profit fell more than 50%. The reason was weak sales and poor quarter units for the production of memory chips — there is a recession at all was 71%. Against this background, Samsung shares fell, though only slightly.
The stock Samsung
Why Apple shares are getting more expensive
It is likely that the failure of Samsung only warmed up interest of investors to Apple. They again turn to face her, especially when the Corporation pays out generous dividends to its shareholders. It works in the opposite direction: for example, the depreciation of the securities of Apple last year was affected by the news about the incredible demand for the smartphones Galaxy S and Note from Samsung. Many investors began to worry that the pace of the South Korean giant will take away significant market share from iPhone.
Insiders report that Samsung intends to seriously reconsider its strategy of development and behavior in the market. For example, this year the company will spend roughly more than $ 10 billion on the advertising campaign of their devices. Apple spends more — about $ 15 billion.
But there is another reason.
Now Apple see not just another technological Corporation and leader with ambitious plans and promising future. No wonder just a week before the financial report, Apple announced about the purchase of the modem business to Intel. Freedom from chips, Qualcomm will increase the effectiveness of the “Apple” of the Corporation and reducing its costs, and that investors love.
Besides, very soon all users of Apple technology will begin to use the new services of the company. Among them, the Apple Bank Card, an entertainment Apple TV+, Apple games Arcade and many others. And the fact that in this quarter the services brought her the most money all time, only confirms the fact that the company has chosen the right path. After all, this year the audience of the Apple services will increase several times. Samsung this is not all: the South Korean giant sells smartphones, tablets, technology, makes the chips. And not paying attention to the services, but also could earn them very much. And something tells that even now jumped onto the wagon late in the day.
Yes, falling iPhone sales seem inevitable amid weakening global economy. However, it is impossible not to draw attention to the fact that the profits that Apple bring the services directly depends on the sales of smartphones. Services for Apple is iCloud, Apple Pay, Apple Music, and selling music and movies on iTunes and selling apps in the App Store. Maybe Apple has a cunning plan? A company that really built its business on selling services, would make the next move: she would have started to produce and sell low-cost smartphone, due to which can grow the number of users of the services. However, on the one hand, it certainly can contribute to the growth of sales of the iPhone, which Tim cook has no hope, and on the other hand, the General Director Apple on the question of the probability of exceeding the budget iPhone is clearly said that Apple will not change its strategy.
However, the time main battles between Apple and Samsung is still ahead. The approaching season of autumn and Christmas sales — the “Golden” period for any technological corporations, when the demand for smartphones and tablets reaches record levels. And there is a feeling that Apple is much more likely to win this battle: the buyers are still under the impression of its new products, and the iPhone and iPad remain one of the most desired gifts for the upcoming holidays.