Apple Is Seeing The Fruit Of Its Labor

Apple Is Seeing The Fruit Of Its Labor
Daniel Johnston

10 months ago2 mins

Mentioned in story

What’s going on here?

Apple’s toiling and tinkering led to expectation-beating results last quarter.

What does this mean?

Apple’s iPhone sales, the company’s pride and joy, staged a remarkable comeback last quarter, outshining a shrinking smartphone market and growing revenue compared to the same quarter last year. That rebound balanced out less-than-stellar sales of Macs and iPads – and while the ever-lucrative services segment (including Apple TV, Music, and iCloud) may not have exceeded expectations, it still managed to chalk up sales growth of 5%. All in all, Apple put in a solid performance, with folks using more of its products than ever before. And with a $90 billion share buyback program thrown into the mix, it’s no surprise relieved investors initially sent the stock up.

Apple revenue
Source: Apple, MacRumors

Why should I care?

The bigger picture: The Apple of my AI.

It’s AI-mania in the tech world these days, with heavyweights like Microsoft, Alphabet, and Amazon going all-in on uber-trendy artificial intelligence. And while Apple – the biggest of them all – seems to be playing it cool, it’s actually weaving a little AI magic into its own offerings, spicing up user experience and rejigging product use cases. There’s also plenty of AI under the hood of Apple’s self-driving car project – and the tech world’s abuzz with reports it’s working on an AI-powered health coach too.

For markets: Big Apple.

This has been a strong earnings season for Big Tech, with all the usual suspects smashing through analysts’ expectations. And with their cash-rich balance sheets also luring investors in a so-called “flight to safety”, last week Apple and Microsoft made up a bigger proportion of the S&P 500 than ever before. In fact, around half of the total gains clocked up by the S&P 500 this year have been down to the two giants. And while that’s impressive, it’s risky too: any tumble in those titans’ values could rock the index to its core.

Apple Microsoft SP 500
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