Will Apple’s App Services & Growth In China Power Q3 Results?
Dow 30 component Apple (AAPL) has revolutionized personal technology with the introduction of the Macintosh in 1984. Today Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch and Apple TV. Apple’s four software platforms — iOS, macOS, watchOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to “leaving the world better than they found it.
Reportedly, Apple Inc is expected to see a growth in its services revenue through its App store services and reaccelerated growth in China in the third quarter as reported by Evercore ISI. The recent focus of Apple on its services business is critical as the iPhone maker experiences a saturated smartphone market. Last year, the App store generated $37.1 billion in revenue. The revenue is expected to grow 18 percent to $9 billion in the third quarter this year.
“We think there is likely upside ahead when it comes to services revenues in the June-quarter, driven by a sizable acceleration in China-centric markets,” analyst Amit Daryanani stated.
China has been a crucial market for Apple, where the latter generated 18% of its total revenue in the quarter ending March from Greater China.
“The reacceleration of growth in China is encouraging, while most other growth trends held stable,” Daryanani stated.
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