Apple announced that in the first quarter of this year sales increased by 5% to $53 billion and net income increased from $10.5 billion to $11.0 billion. Despite the strong financial results, iPhone and iPad shipments were weaker than consensus estimates, causing many analysts to reduce earnings estimates for the remainder of the year.
In a conference call with analysts, CEO Tim Cook highlighted progress in cloud offerings, services revenue, which has now topped $7 billion for two consecutive quarters, and a 45% increase in transactions for Apple Pay. Cook was also optimistic on the environment in China saying, “As I mentioned in my comments, our retail and online stores did well overall and in China. They grew by 21%, which is an acceleration from what we had seen in the previous quarter. And traffic – which for us is incredibly important in the retail stores because we do a lot more than sell – traffic was up 27% year on year. And now seven of our top ten highest traffic stores in the world are in Greater China. And so that’s the set of things that went in our direction, so to speak.”
Apple is now the valuable company in the world, with investors placing a valuation on it of $774 billion.
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