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Apple forecasts strong sales even if the iphone fall to less than half of the revenue

(Reuters) – Apple Inc’s (AAPL.O) iPhone sales dropped to less than one-half of the sales revenue generated per quarter and for the first time in seven years, but CEO Tim Cook on Tuesday described the change of success is to diversify away from a single product, and the forecast results above Wall Street’s targets.

FILE PHOTO: The Apple logo will appear on the stage, before a product unveiling event at Apple headquarters in Cupertino, california October 4, 2011. REUTERS/Robert Galbraith/File Photo

The Cook told Reuters that “the significant improvement in” greater China,” reed’s fiscal third-quarter results that topped expectations, and in spite of the market pressure, and the shares rose 4.25% in after hours.

“We actually grew up in the mainland of China,” Cook told Reuters. “The non-iPhone revenue increased by 17%. We are growing in every category, the exterior of the iPhone.”

the iPhone’s sales have decreased by 12% to $25.99 billion, after dropping 17% in the last quarter of the year.

Image: iPhone, fade – tmsnrt.rs/2yAEoCh

Dying person’s world-wide sales of cell phones have caused Apple to target growth in music, films, apps, games, videos, and a soon-to-be get a credit card. Cook said that the company had succeeded in growing the number of devices of the user, to improve the market for services and equipment.

Services revenue in the fiscal third quarter increased 12.6% to $11.46 billion, a new all-time high. It’s the missed expectations of $11.73 billion, according to IBES data, Refinitiv, but the Cook has told Reuters that, after factoring out a one-time payment of litigation, a year ago, and the exchange rate, in the services segment, growth would have been 18%.

China sales decreased by 4% to us $9.16 billion, improving from a decline of 22% in the second quarter of the year.

Apple said that it expects revenue for the current fiscal fourth quarter to between $61 billion and $64 billion, which compares to the analyst estimate of $61.02 billion.

For the fiscal third quarter, which ended in June, Apple reported a 1% rise in revenue to $53.8 billion and a 7% decline in earnings per share to $2.18, compared with expectations of $ 53.39 million and $2.10 per share, in accordance with Refinitiv of the data.

Hal Eddins, chief economist for the Apple and is a shareholder of Capital Investment Counsel, said he was pleasantly surprised to find out that the iPhone sales is dropping slowly, down compared with the previous quarter.

“You don’t really hear people talking on their phones, as they did a few years ago,” Eddins said. However, “the key to this is that if people are willing to spend on a phone, and they do it with an Apple product.”

Apple did not give the number of active devices made by Apple, but in January it said it had 1.4 billion, and 900 million of those iPhones. Investors ‘ use of the song, which is called the ‘installed base’, as a proxy for the number of subscribers to its services in the private sector. Mr Cook told investors on a conference call on Tuesday, Apple has 420 million paid subscribers to its own services and for third-party apps. The company has set a target of 500 million by the year 2020.

A trip to Miller, a managing partner of Apple shareholder in Gullane Capital ners, said that he would like to see in services for growth and a return to the 20% range, and you think that Apple needs to be in the billions of dollars worth of cash, to buy the media in order to fuel the future of tv service.

“You have to have a larger installed base, and services, that people will get value from it,” says Miller.

THE TRADE TENSION STILL LOOMS LARGE

Apple reported results for the U.S. and Chinese trade negotiators have resumed off-and-on talks. The US President when He suspended the new rates to a permanent $300 billion of Chinese imports, including the iphone.

The trade tension is reduced and economic growth in China, a crucial market for Apple, which has effectively cut the iPhone prices in China earlier this year after the currency exchange, rates could have been made of her phone is too expensive for many Chinese consumers.

Apple’s market share in China has fallen to 5.8% from 6.4%, according to market research firm Canalys, in part because of the smartphone’s rival, Huawei Technologies Co., Ltd market share of the top handset seller in the country.

But Apple’s experience in a smaller and smaller share of the market to eliminate other competitors, such as Xiaomi Corp. (to 1810.HK), Oppo and Vivo, according to the Canalys data. Cook said that the iPhone price changes, and the Chinese government’s move to cut the telephone tax so that the iPhone’s sales in China, has served to erode further.

“Our trade-in and financing programs are doing extremely well in China,” Cook told Reuters. “Because of the active installed base is growing in China, and our services, we are doing very well, growing at double-digit rates.”

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Apple shares have gained more than 20% since the beginning of June, when the shares fell on the news that the U.S. Department of Justice had the competence to decide on the company as a potential probe as part of a wider review of the question of whether the technology giants to engage in anti-competitive practices.

Apple said that sales of its “Wearables, and home accessories segment includes devices such as the Apple Watch, and the AirPods was $ 5.53 billion, compared with the analyst estimate of $4.81 billion.

Apple said it returned more than $21 billion to shareholders over the course of the third quarter, including $17 billion worth of shares are bought back. It declared a dividend of 77 cents per share.

Report by Stephen Nellis in San Francisco; Editing by Peter Henderson and Lisa Shumaker

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