Apple Q2 - iPad Rebound

Apple reported its second-quarter earnings on Tuesday after-market and the shares surged 7% in after-hours trade. All thanks to the continued success of the company's service business, and the ultra-profitable iPhone. From the left field, out of the ashes emerged a big surprise from the iPad showing some growth too!

Apple posted revenues of $58.02 billion above analysts expectations of $54.77 billion (according to Nasdaq), this unfortunately was still a 5% drop on a year-on-year basis as Apple shifts from iPhone dependency into a more diversified widget and services business.



The magnificent iPad made $4.87 billion in revenues for the first-quarter of 2019 or Apple's second financial quarter (accounting calendars sometimes). It was an increase of an astonishing 20% as compared to the same period last year. Thanks to the latest generation of the iPad Pro.



Apple iPhone, the cash cow of this business, printed revenues of $31 billion for the quarter, down 18% year-on-year. The iPhone is finding it pretty hard to break into big markets like China and India where Huawei, Samsung, Xiaomi, and Oppo are more dominant.

Apple services revenues showed no signs of slowing down with revenues of $11.4 billion for the quarter, up 25% year-on-year. This marked the fifth consecutive quarter of growth for the services business, and as a result, it's the second largest business ahead of Macs, iPads, etc. According to Quartz, this quarter alone would rank the business on its own at number 264 on the Fortune 500 list.



Apple's shift towards monetising their already massive network, by offering more services, is paying off big time. It helps lock down the Macboys and iPhone diehards; even if they aren't really buying new devices. The Apple valuation crossed a trillion dollars once again and we are happy holders at this point.