Gross margins were 37.9 percent during the quarter, slightly below the 38 percent expected by a StreetAccount consensus estimate — meaning Apple is usually selling products in which are more expensive to make.
in which all comes as Apple moves within arm’s reach of a trillion-dollar valuation, securing its place as the most valuable public company within the entire world. Apple shares have risen about 50 percent over the past year, in addition to Apple’s market capitalization crested $900 billion after hours on Thursday.
Though the iPhone franchise is usually somewhat in limbo, there are various other factors afoot for Apple. For one, Apple is usually likely the top beneficiary of U.S. technology companies when the idea comes to a fresh Republican tax proposal on overseas cash.
Apple expects a tax rate of 25.5 percent within the coming quarter, compared with the 26 percent the idea forecast a year ago.
Apple also carries a blossoming service business. in which division includes content, AppleCare, in addition to Apple Pay, nevertheless the App Store is usually the “jewel” of the services segment, Pacific Crest analyst Andy Hargreaves wrote earlier in which year.
Services revenue hit $8.5 billion during the fourth fiscal quarter, an all-time high, in addition to Cook said the company is usually well on its way to a goal, set in January, to double 2016’s services revenue of $24 billion by 2020. Cook said the idea hit $30 billion within the 2017 fiscal year.
Apple has invested heavily in greater China— historically its third-largest market behind the Americas in addition to Europe — in addition to carries a nascent customer base in India.
Sales in China hit $9.8 billion, up 12 percent via a year ago, returning the segment to growth after an extended slump. IPads, particularly, are favorite in thes regions, in addition to sales grew 39 percent year-over-year in India, Luca Maestri, Apple’s chief financial officer, said on a conference call.
The company also showed off various other fresh products within the back half of in which year, amid back-to-school shopping season: the Apple Watch Series 3 using a cellular connection, its thinnest in addition to lightest MacBook yet, in addition to the Apple TV 4K. The HomePod speaker is usually also forthcoming.
The computer market may be shrinking, nevertheless Apple is usually still hitting record sales for its iconic computers: Mac revenue was $7.17 billion, up 25 percent via a year ago, in addition to reached record revenue for the 2017 fiscal year, Maestri said. various other products revenue hit $3.23 billion, up 36 percent via a year ago.
Apple’s board also declared a cash dividend of 63 cents per share on Thursday.