Apple makes $1B commitment toward more US manufacturing jobs

Posted May 06, 2017

Another bump that Apple faced this quarter was the sale of iPhones. However, Apple was able to bounce back in the holiday season with the launch of the iPhone 7 and iPhone 7 Plus to post a new record in number of iPhones sold, with 78.3 million units booked in the first quarter of the fiscal year. This accounted for $33.25 billion in revenue or 63 percent of the total.

Apple CEO Tim Cook pointed to sales of the more expensive iPhone 7 Plus for this increase, saying: "We are proud to report a strong March quarter, with revenue growth accelerating from the December quarter and continued robust demand for iPhone 7 Plus".

During the second quarter, China's currency devalued five percent, Cook said, adding that that's "not an insignificant headwind". Tim Cook reiterated this in an interview with CNBC: "We are seeing a kind of delay in purchasing behaviour that we think is a effect of the number of rumours and reports about future products".

During the last quarter, Other Products accounted for just $2.87 billion of Apple's revenue or 5.4 percent. Apple may want to do that in order to stir excitement among consumers, though this would probably have an unwanted effect on sales of current iPhone models.

Speaking on CNBC's Mad Money on Wednesday, Cook boasted that Apple has already created 2 million jobs in America and said the company has plans to hire "thousands more employees in the future". The company also called out strong double digit growth in India, which remains early.

The brand is also struggling in China a little, where sales fell almost two per cent in the face of competition from local rivals such as Samsung and Xiaomi. Apple said the results met or exceeded its own targets and guidance, but some of the numbers fell slightly short of what most financial analysts were expecting.

Revenue rose 4.6 percent to $52.90 billion in the quarter, compared with analysts' average estimate of $53.02 billion.

Apple iPad sales also saw a drop from 10.34 million units last year to 8.9 million sold this year.

Revenue from the App Store, Apple Pay and the like clocked in at US$7.04bn, which was up from US$6bn the year before but a tad below the US$7.06bn Wall Street had pencilled in.