Apple has announced a return to sales growth of 4.9%, the majority its revenue growth came from the iPad division and Services division.
👉 Background: Apple has been a tech innovator since the early days of the Mac, then the iPod, and then the iPhone which took Apple into the stratosphere of World’s-Most-Valuable-Company.
👉 What happened: Investors were concerned last quarter when iPhone sales were declining. But now, Apple has announced a return to sales growth of 4.9%, the majority its revenue growth came from the iPad division and Services division (Apple TV, iCloud storage and other subscriptions).
👉 What else: Now, Apple’s main goal is to reduce reliance on its iPhone hardware and shift even more of that demand to its software. And investors were liking the sound of dem apples.
💡Not all revenues streams are created equally.
💡Apple’s services business has much stronger margins than its hardware products. But, Apple still relies on its iPhones which accounted for about 46% of the company’s sales during the quarter. So pushing the software division is key.
💡 And the next key software feature is its Apple Intelligence. And just like Samsung with its Galaxy AI services, it will likely charge for this feature. So Apple’s investors are lickin' their lips at the idea of another software stream of revenue.
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