Mobile phone giant, Apple has reported results which were more than the predicted ones for the past quarter, with higher revenue and profits leading to increase in the share price.
The profit of the firm increased by 12% to $8.7 billion, while revenue experienced an increase by 7% to $45.4 billion, which was revealed in a report on Tuesday. The giant sold 41 million iPhones in the past quarter which ended to July 1.
The share price of Apple also experienced an increase, with a boost of 6% as the price rose to $159.01. The price saw an increase immediately after the California company revealed their earnings.
Apple chief executive Tim Cook spoke about continous growth of the firm, which experienced an all-time quarterly record for revenue.
Moreover, the firm has been drawing attention towards its increasing revenue by selling services and content to customers using its popular gadgets.
This is also seen as an effort to make investors believe that the California-based company does not only rely on the revenue from the sale of its world-famous iPhones, which had been its main source of revenue.
Apple also revealed that the source of 61% of its revenue in the past quarter was from outside the United States, showing its market did not only exist in the US.
However, the firm might be worried with a drop in revenue in the all-important market of China, where there revenue dropped from last year to a little over than $8 billion.
Last month, Apple removed software which allowed internet users to skirt China’s “Great Firewall” from Apple’s app store in China, which brought criticism to the company that it was helpless in front of the tightening web censorship of Beijing.
Internet users in China have been using foreign virtual private network (VPN) services to overcome heavy internet restrictions imposed by the government. The internet restrictions include blocks on Facebook and Twitter, which have been a problem for the locals in China.
Beijing announced that all developers should have government licenses to offer VPNs, which led to Apple scrapping its VPN service through the app store.
To justify that decision, chief executive Cook argued that the company had to obey laws in the country in which it operates. However, he is determined that restrictions will lighten, which will pave way for innovation.
Cook also insisted that the App Store in China still had VPN apps, including apps from developers outside the Asian country.
Cook responded cleverly when asked about U.S President Donald Trump claiming that the California-based company had planned to build three mega plants in the U.S. He claimed that the firm had a little sense of responsibility towards its home nation, but had not revealed any detail on manufacturing new units in the country.
Cook also insisted that the company had created two million jobs in the U.S, with developers, who make software for Apple’s devices, occupying three-quarters of those jobs.
Moreover, he also revealed that Apple has been an avid purchaser of US manufactured goods and services, and had launched a fund to increase the awareness for U.S manufacturing sector.
Cook also added that the fund started with investment of a billion dollars, with about $200 million being funded to Corning Glass to extend their US plant and make screens for Apple’s gadgets.
According to the chief executive, Apple is also looking to promote education programs involving technical skills, and is tipped to hire more labour from the country.
The results of the past quarter revealed that the tech giant had been able to keep their positive trend going, with customers also anticipating the arrival of a special 10th anniversary iPhone, later this year.
Even though iPhone sales were higher than expected in the quarter, but the chief executive insisted that the rumors of a possible anniversary iPhone stopped the figures from climbing further.
However, the California firm also operates in a increasingly competitive smartphone market, which is dominated by South Korean Samsung, and other makers who use the Google Android software.
Even though the iPhone brought 60% of the revenue of Apple in the last quarter, the firm is looking to diversify in other markets with the Apple Watch and selling digital content and services.