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apple Its flagship is struggling to squeeze growth from the iPhone unit, but its profit margin is increasing with the business of developing services.

In its first quarter’s report on Thursday, Apple reported a total margin-which was left by -46.9 % after calculating the cost of sold goods. The company’s record is the highest in the record, leaving behind 46.6 % margin in the period ending March 2024.

For Apple, services include App Store purchases, advertising, payment, Apple Care Support and other subscriptions. The increase in these products has slowed the iPhone sales and fulfilling the saturation in the global smartphone market.

“Usually the overall services business is from the company’s margin,” Apple’s CFO Kevin Parikh said on the revenue call after the report.

In the current quarter, Apple said its total margin will be between 46.5 % and 47.5 %.

The iPhone sales slipped about 1 % in the latest quarter a year ago, as the company reported weakness in Greater China. The total revenue increased by about 4 % to $ 124.3 billion.

The revenue of services increased by about 4 % to $ 26.34 billion, defeating analysts’ estimates. Now the business is about 21 % of Apple’s gross revenue. In the last quarter, Apple announced that its services unit has been transformed into a 100 billion business in a year.

CEO Tim Cook said, “We were delighted to bring consumers to the best lineup of products and services in the holiday season.” Press release.

Emphasizing Kick’s services has changed theory about a Wall Street company, which has been praised by its famous devices during the decades. For many years in the iPhone era, Apple’s total margin will come between 38 and 39 %, which reflects the company’s strong grip on its supply chain and its prices in the market.

But with the reduction of iPhone growth in recent years, Apple’s services have changed equality. The company targeted a 40 % overall margin in 2021 and continued to expand.

Due to the love of Wall Street, Apple has been able to continue to supply investors. Last year, stock increased by 31 %, which performed Nice Deck better, and the company’s market cap has risen to $ 6 3.6 trillion.

“We believe that Apple deserves to trade in the premium for its historical comparative diagnosis, as it further separates itself as a premium electronic consumer devices and high marginal digital services providers, and especially As the device is underway, the age of the Generative AI, “Argus analysts wrote in a report earlier this month. They recommend buying stocks.

Apple’s shares increased by more than 3 % after Thursday’s report.

See: Apple’s AI integration is very important

(tagstotranslate) earnings



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