Corporate: Apple Compete for the Highest Revenue

Saroj Lamichhane,

iPhone, iMac, Ipads, and earbuds have attracted many consumers in recent time. Surprisingly, sales of iPhones are hurt as compared to its accessories from its quarterly report published on June 29.

Apple Inc. California said the company’s net revenue increased from $53.27 billion to $53.8 billion with an increase in its operating expenses. The company published its third quarterly report on June 29, 2019, said its current assets is also increased from 131, 339 to 134, 973.

Apple’s  Chief Executive Officer Tim Cook said it is the biggest June quarter ever from Wearables, accelerating growth in revenues from iPad and Mac and significant improvement in iPhone trends. “These results are promising across all our geographic segments, and we’re confident about what’s ahead. The balance of calendar 2019 will be an exciting period, with major launches on all of our platforms, new services, and several new products,” said Cook on the company’s press release published on July 30, 2019.

Companies like Nokia Corp., Motorola Inc., Blackberry, Sony Corp. and Palm have decreased their demand as compared to Samsung Inc. and Apple. The customer satisfaction of Samsung and Apple are higher and unstoppable. Although boom and bust in the revenue for these two companies, consumer preferences are random all over the world. Any new release of Apple products meaning Samsung is releasing something similar and competitive.

Like Apple, consumer demand for Samsung smartphones, televisions and home theater, tablets and earbuds is higher. The updated smartphones and tablets with unique features in its operating system have attracted people from many age groups.

Apple proves to the market as a leading tech company in the world. It offers four different software platforms to customers: iOS, macOS, watchOS and tvOS. Consumers get multiple experiences from multiple devices seamlessly.

The Chief Finance Officer for Apple Luca Maestri said Apple returned $21 billion to stakeholders during the quarter and  $17 billion through open market repurchases of almost 88 million Apple shares, and $3.6 billion in dividends and equivalents. The earning per share of the company has decreased from $2.36 to $2.20 billion.

Apple dropped its sales on iPhone from $29.470 to $25.99 billion (11.81%), whereas its sales on Wearables and other accessories are increased from $3, 733 to $5, 525 billion (48%). In 2018, 46.2 millions unit of Apple wearable devices were shipped. Samsung Inc. shipped only 10.7 millions unit of wearable and accessories.

Apple said the total cash generated from operating activities fluctuated with the decrease from 57, 911 to 49, 481 million (14.56%). Current and noncurrent assets have been increased. The beginning balance for common stock and additional paid-in-capital was 42, 801 billion that ended with 43, 371. Both of them are higher than in the previous year's report.

Apple said it expects to increase its revenue between $61 billion and $64 billion in its fourth quarter of fiscal 2019. The tax rate is expected 16.5% and other income is expected to be $200 million.

“Our year-over-year business performance improved compared to the March quarter and drove strong operating cash flow of $11.6 billion,”  Maestri added.

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