The theory is that there are 1.4 billion active iPhones, iPads and other Apple devices out there, giving the company a huge distribution platform through which it can sell software.
(MENAFN - Baystreet.ca) Apple (NASDAQ:AAPL) reported earnings for its March quarter Tuesday that fell in line with expectations, although revenue was down from the same period past year. That downturn followed a 5% drop in the previous quarter. Buybacks boost earnings per share by cutting the number of shares outstanding.
"Apple reported a clean March quarter and bullish June quarter outlook which against a backdrop of negative investor sentiment sets up for shares to move higher", Morgan Stanley analysts said.
Investors seem happy with these results, too.
Apple delivered stronger-than-expected financial results for the past quarter as gains in services helped offset slumping iPhone sales, sparking a rally in shares of the technology giant.
Apple posted $11.45 billion in revenue for its services, compared to the $11.2 billion analyst expectation.
Until recently, Apple could count on people eagerly lining up to buy its latest iPhone models at ever loftier prices. Many consumers aren't seeing enough compelling new features to persuade them to scrap their old devices for a new one.More news: Ariana Grande Teases Billboard Music Awards Performance
Realising this, Apple has begun reducing the price of newly-launched iPhones in India.
"Our retail and online stores continue to be a key point of innovation", Cook said on Tuesday.
That era ended last fall.
"This is the largest single-quarter decline in the history of the iPhone", said Canalys researcher Ben Stanton.
According to a report from the Japanese site Mac Otakara, however, Apple will include the goods necessary for fast charging - a USB-C to Lightning cable and the USB-C 18W adapter - with its next series of iPhones.
Apple already has attracted more than 50 million subscribers to a music streaming service it started four years ago.
There are still outstanding questions on the newly-introduced services, and some analysts are asking for more details.