Apple Inc. (AAPL – Get Rating) has been in the news lately due to the recent developments where the Chinese government banned the use of iPhones and other AAPL products for government employees. The tech giant’s annual product launch event, dubbed ‘Wonderlust,’ is due today, where it is set to reveal a series of updates over its product range.
In this piece, I have discussed why adding AAPL to one’s watchlist could be wise.
AAPL’s third-quarter EPS was 5.5% above analyst estimates, while its revenue matched the consensus estimate. Despite its total revenue falling year-over-year, its services revenue reached a new all-time high.
AAPL’s CEO Tim Cook said, “We are happy to report that we had an all-time revenue record in the Services during the June quarter, driven by over 1 billion paid subscriptions, and we saw continued strength in emerging markets thanks to robust sales of iPhone.”
Commenting on the company’s third-quarter performance, AAPL CFO Luca Maestri said, “Our June quarter year-over-year business performance improved from the March quarter, and our installed base of active devices reached an all-time high in every geographic segment. During the quarter, we generated very strong operating cash flow of $26 billion, returned over $24 billion to our shareholders, and continued to invest in our long-term growth plans.”
Amid rising geopolitical tensions between the United States and China, the Chinese government banned the use of iPhones at work in what was seen as an effort to reduce security risks posed by Apple devices. China’s latest move is the latest development in the ongoing trade and tech war between the two largest economies.
Nikkei reported that some state-owned companies were prohibiting employees with trade secrets from bringing AAPL products to their workplaces. China’s move to stop government employees from using AAPL products led to the company’s market capitalization falling by over $200 billion last week.
China is a crucial market for AAPL, with sales from its Greater China segment accounting for 20% of sales in the third quarter. During the third quarter, its Greater China sales rose 7.9% year-over-year to $15.76 billion.
The company is expected to launch its much-awaited iPhone 15 later today, along with new Apple watches. AAPL is expected to shift away from its famed Lightning connector and adopt a USB-C port.
The stock has performed exceptionally well this year. Despite the recent ban…
Continue reading at STOCKNEWS.com