The Price of iPhone 12 Could Be As Less As $649

Joanna Estrada
May 6, 2020

Apple Music and other services experienced a almost $1.9 billion surge year over year, and their $13.3 billion in quarterly earnings set a new all-time record.

According to a report by Bloomberg, Apple CEO Tim Cook says that Apple has plans to reopen its stores in Australia and Austria in the next one or two weeks. Cook announced the number after revealing the company's Q2 performance, which saw its Products revenue decline year-over-year while Services surged. That would mark a departure from Apple's current approach, considering it's launched new iPhones in three different versions in recent years. Apple has not delivered any users numbers on how that element of the platform is faring. There are many suppliers in China that have closed their operations or have limited their capacity amid coronavirus outbreak. The consensus Apple earnings forecast was $2.10 a share. Interestingly, however, net sales dropped year over year in the Americas, Greater China, and Japan, while European sales grew by about $1.24 billion.

Cook also said that given the lack of "visibility and certainty in the near term", the company will not be issuing guidance in the coming quarter.

Apple offset declines in China with strong sales in the US and Europe, where shutdowns and store closures didn't begin until the final weeks of the March quarter.

"That began to recover some in March and we've seen further recovery in April".

Apple is also sticking to its M&A strategy, Maestri said, while reiterating a pledge to invest $350 billion in the US economy in coming years.

Apple was on track for a record financial quarter before the pandemic derailed lives and economies, according to executives.

In a show of confidence, Apple's board of directors approved putting another $50 billion of the company's cash reserves toward buying back shares, and bumped up the dividend to 82 cents per share of common stock.

On Thursday, Maestri said digital content services, such as Apple TV+ and Music, will remain strong, but that the AppleCare warranty business and revenue from advertising deals would again dip. However, it is worth mentioning that the iPhone 12 will have a 5.4-inch model this year for the base variant.

"The group was quiet on AppleTV+, and we wonder how many subscribers were added in the quarter, especially following updates from rivals like Netflix and Disney+", said Sophie Lund-Yates, an equity analyst at Hargreaves Lansdown. Services sales jumped 17% to $13.35 billion, while the wearables and accessories business climbed 23% to $6.28 billion. The second-generation iPhone SE starts at nearly $400, a relative bargain given that other models sell for $700 to $1,000.

Other reports by Click Lancashire

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