Once again Apple beats the market and shows the way to its competitors
Once again Apple keeps surprising the market with Apple second quarter results beating the analysts’ estimates roundly and putting the company on track to becoming the first US corporation to have a trillion dollar market valuation.
Coupled to nearly fourteen billion dollars in profit for the last quarter is that the company is looking to return $200 billion of cash back to shareholders.
A particular high point in Apple’s results are its China sales with the company showing seventy percent year on year growth, showing it’s possible for western companies to sell into the PRC.
Those results are from iPhone sales and, given the Chinese smartphone market is ruthlessly competitive, it puts the managers of all US and European companies on notice that there are no longer any excuses about not performing in the Middle Kingdom.
Another key takeaway from Apple’s results is the tablet market is limited with iPad sales down 23% compared to last year.
The question now is how big are watch sales going to be? It may well turn out that the Apple Watch is similar to the iPad – a market defining product but one that isn’t the company’s mainstay.
Regardless of how well the Apple Watch, the iPad or the iPhone’s Chinese sales perform next quarter, it’s safe to say Apple will probably break more records over the next year.
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