Published: Thu, August 30, 2018
IT | By Emmett Cole

Apple’s pricey iPhone X, subscriptions deliver earnings beat

Apple’s pricey iPhone X, subscriptions deliver earnings beat

Apple is looking at whether it will be hit by tariffs on purchases the company must make, possibly related to data centers, Chief Executive Tim Cook said on a conference call with investors.

Despite the trade war, China remains one of Apple's best markets, posting double-digit revenue growth in the country for the fourth quarter in a row, Cook said.

Shares in the Silicon Valley-based technology titan rose 4.03 per cent to $US197.95 in after-hours trade that followed release of the earnings figures.

A lower share count means Apple's stock must reach a higher price to reach a $1 trillion market capitalization.

President Donald Trump's trade wars include 25 per cent United States tariffs on $US34 billion in Chinese goods, with more on the way, and steep tariffs on steel and aluminium, which provoked Beijing and others to hit back with import duties on U.S. goods. CEO Tim Cook said that while the company's products hadn't been hurt by tariffs imposed so far, Apple is still examining the impact of proposed USA tariffs on $200 billion worth of Chinese goods.

"All of this said, we are optimistic that this will get sorted out".

"Each country can only prosper if the other does", he said.

In addition, the technology giant will give guidance on expected performance for the next three months, including the crucial month of September when the company is expected to unveil the next version of the iPhone - where as many as three new handsets could be revealed.

Globally, higher selling prices for devices like the iPhone X and iPhone 8 pleased Wall Street analysts.

"If you look at the top of our line together, they are growing very nicely" Cook said.

Apple has managed to shine, despite bruises to its image that included being accused of keeping young people addicted to smartphones.

That would put Apple's stock market value at $973 billion, based on its newly disclosed number of shares. Huawei took that spot, research firm IDC said Tuesday, with 54.2 million phones versus Apple's 41.3 million.

A team at 9To5Mac have found references to a second sim slot on iPhones hidden away in the code of the latest iOS 12 developer beta 5.

"We believe Apple's strong software capabilities, expanding services business and unique digital ecosystem at large are increasingly being appreciated by the market", analyst Brian White of Monness, Crespi, Hardt & Co., said ahead of the report.

Cook said Apple Music has more than 50 million users when free trials are counted and hinted at the company's video content efforts.

"We feel great about our current services and are thrilled about our pipeline with some new services as well".

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