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How to revive business Apple sales in China decreased for 6 consecutive quarters
[Global Technology Correspondent – Wang Huan] According to the "Nikkei Asian Review," Apple's financial report for the second quarter, released on August 1, indicated that the company’s net profit had grown by 12% year-over-year to reach $8.717 billion. This impressive figure was driven by the high-margin sales of larger-screen iPhones, which not only boosted profitability but also sustained profit growth over two consecutive quarters. During this reporting period, total sales climbed by 7% to $45.408 billion. Even as consumer demand appeared to dip ahead of the anticipated major updates to the iPhone line expected in fall 2017, Apple managed to capitalize on the strong demand for its current large-screen models. Additionally, the iPad line saw a remarkable recovery.
iPhone sales edged up by 2% to 41.02 million units, with the larger-screen models driving an approximate 2% increase in average selling prices. Consequently, iPhone sales revenue grew by 3% to $24.8 billion. Apple’s premium pricing strategy, bolstered by its brand strength, continues to pay dividends. Meanwhile, tablet sales of the iPad surged by 15% to 11.22 million units, regaining momentum thanks to the introduction of more affordable new models. Personal computer sales under the Mac brand also showed improvement, increasing by 1% to 4.29 million units.
Sales from other product lines, including the Apple Watch and Apple TV, jumped by 23%. The recent launch of wireless headphones also played a significant role in this growth. Service-related revenues, such as those from apps and digital content, posted a 22% rise, maintaining their robust upward trajectory.
Regionally, sales in the Americas expanded by 13%, while Europe saw a 11% increase. Japan experienced a modest 3% growth. However, in China, sales contracted by 10%, marking the sixth consecutive quarterly decline.
The company's earnings per share came in at $1.67, surpassing the $1.42 recorded during the same period last year.
Taking into account the growing popularity of larger-screen iPhones and the robust performance of service revenues, Apple has set its revenue forecast for the July-September quarter at a maximum of around 11%. Following the release of these results, which exceeded market expectations, Apple’s stock price climbed by approximately 6% in pre-market trading on August 1.
As we look forward, Apple remains poised to leverage its strategic focus on high-margin products and expanding service offerings to sustain its growth momentum.