The rally may have stemmed from another
encouraging sign that emerged in the quarterly
report. Apple’s total sales in China decreased
by 4% in the quarter compared with a year
ago, after plunging 25% during the first half
of the company’s fiscal year. That dramatic
improvement eased fears that the Trump
administration’s trade war in China might
trigger a consumer boycott of Apple’s products
in the country in retaliation.
“We couldn’t be happier with the progress,”
Apple CEO Tim Cook said during a Tuesday
conference call. He credited both Apple’s own
price cuts and economic stimulus programs
rolled out by China’s government to counteract
the effects of U.S. tariffs.
Worldwide revenue from iPhones during
the quarter totaled $26 billion, a 12% decrease
from the same time last year. It marks the
third straight quarter of eroding iPhone
sales, something that has only happened
once before.
Apple is forecasting its total revenue for the
July-September period will fall from last year,
a sign that it is bracing for yet another drop
in iPhone sales. That’s particularly striking
because Apple typically gets a big boost
from the release of new iPhone models in
late September.
Even with the iPhone in decline, Apple remains
a financial powerhouse. Total revenue grew 1%
from last year to $53.9 billion.
The services division remains the biggest area
of growth, with revenue surging 13% from last
year to $11.5 billion in the past quarter.