Apple builds your business by innovation. But moving, it is a leg supported by diplomacy.
Tim Cook, Executive Director of Apple, recently obtained exemptions from tariffs on Chinese manufacturing iPhones exports. The maneuver released Apple to focus on business, and regularly, businesses have been good.
A new lower price iPhone, which the company introduced in February, and strong sales and services sales helped the company to do $24.78 billion in quarterly profits, an increase of 4.8 percent compared to the year, Apple said Thursday. Company’s sales increased 5 percent to $ 95.36 billion.
The results exceeded The expectations of Wall Street analysts for $ 24.37 billion in earnings and $ 94.35 billion in sales. The company said it expected income to increase slightly in the current quarter, why it ends in June. The shares fell more than 3 percent in the negotiation outside time.
Apple’s constant performance occurred in the midst of turbulence. In just a few months, the company has, to navigate internal and external obstacles, including the failures of its long -awaited artificial intelligence system and the challenges of Trump administration punishment tariffs on the products made abroad.
Duration a call with Wall Street analysts, Mr. Cook said the tariffs had begun to bite their business. He estimated $ 900 million in costs in the current quarter due to rates, he showed that the rates of these encumbrances remain the same and new fees are not introduced.
Last month, Apple’s shares collapsed after President Trump imposed tariffs or 145 percent in China’s exports, where Apple manufactures 80 percent of the iPhones he sells, as well as tariffs in other countries that make iPads and Mac such as Vietnam. The tariffs erased around $ 770 billion of the company’s market value in four days.
Wall Street analysts predicted that Apple would have to increase iPhone prices to $ 1,600, from $ 1,000. Some customers ran to buy iPhones before prices rise, which is expected to help raise sales in the current quarter that ends in June.
But three months after personally donating $ 1 million to the inauguration of Mr. Trump, Cook pressed to the White House to relax his tariffs and persuaded the Trump administration to temporarily yield.
Cook said Apple has responded to tariffs renewing its supply chain to avoid tariffs in assembly products in China. In the current quarter, he said that the company will gather most of the iPhones sold in the United States in India. Macs, iPads and Airpods will be assembled in Vietnam.
“We will manage the company in the way we always have, with reflexive and deliberate decisions,” Cook said. “As long as we look forward, we are still sure.”
On Thursday, Apple said that iPhones sales, its most important business, increased 2 percent to $ 46.84 One billion during the quarter. The company increased iPhone sales by more than 10 percent in Japan, India and the Middle East, which helped claim most smartphone sales in the world about a period of three months, coordination of counterpoint investigation, a market research firm.
The company continues to fight in China, where it reported its sixth quarter of sales decreases. The total income of the region was $ 16 billion in the quarter, 2 percent less than a year ago. It was the only region where sales decreased.
“Everything is fine at this time because prices have not increased,” said Ben Bajain, main analyst at Creative Strategies, a technological research firm. “The question is: if they hit more rates, what happens?”
The company’s services business, which includes apps, Apple Music and Apple Pay sales, eclipsed its devices. Apple reported income for the $ 26.65 business One billion, a 11.6 Increase percent compared to last year.
But the future of Apple’s services is uncertain. In an antitrust case on Wednesday, a federal judge rebuked the company for its commercial practices and ruled that it cannot collect a 27 percent commission in the sales of applications made outside the App Store. Your order allows applications to eliminate Apple from your business, cushioning one of the company’s most important income sources.
Cook said Apple disagree with the ruling and plans to appeal.
In a separate antitrust case, Apple could lose $ 20 billion in revenues of services that Google pays to be the automatic search engine in iPhone web browsers. A federal judge ruled last year that Google had violated the law to maintain a search monopoly. This month, he called an audience to address illegal behavior, including remedies that could include Restrictions on Google payments to Apple.
The company’s device business also faces questions. Last year, Apple revealed a generative AI system capable of improving emails, summarizing notifications and updating its virtual assistant, Siri. He promoted the system, which he called Apple Intelligence, as an important reason to buy a new iPhone. But in March, the company achieved the promotion of its announcement and said they would be delayed until the end of this year.
“We just need more time to complete the work, so they meet our high quality bar,” Cook said. “He is working a little more than we thought. But we are progressing.”
