Apple market capitalization back at $1 trillion as shares surge by 6%

Apple shares flirt with $1 trillion valuation on China sales uptick

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Apple breached the trillion-dollar valuation in August previous year, but later gave up the gains as signs emerged of weak demand for its newest iPhones, especially in China, the world's biggest smartphone market.

"It's growing very, very fast Mike [Mike Olsen, the Piper Jaffray analyst who asked the question]".

IDC analysts don't see Apple turning things around until next year. Apple also said its board had authorized an additional $75 billion in share repurchases and raised its dividend by 5 percent.

In the meantime Apple is repositioning itself as a services and software company as well as the manufacturer of hardware. With all three sets of analysts saying that the number of iPhone units shipped decreased at a higher rate than revenue, they're indicating that the average selling price (ASP) of Apple's handsets is increasing.

Apple Inc. on Tuesday reported fiscal second-quarter profit of $11.56 billion United States, a decline of five per cent from a year earlier but still better than expected.

Apple has been focusing more on services recently and is certainly aware of their potential as the next big growth opportunity. While net income declined to $11.56 billion from $13.82 billion year-over-year, the $2.46 earnings per share figure topped Wall Street consensus forecasts by a dime.

In April, Apple reduced the price of iPhone X by 22%.

The executives noted the company has more than 390 million paid subscriptions, up 30 million from the previous quarter.

Apple's buybacks past year amounted to more than $70 billion, or around five times its own spending on research and development, even then barely putting a dent in the $200 billion cash pile it has racked up in a decade of iPhone and iPad sales. The company has set a goal of 500 million by 2020.

Apple also beat analyst expectations for its wearable business, bringing in sales of $5.1 billion compared with estimates of $4.8 billion. "We also saw a similar result in China", Cook told Reuters in an interview. Rather than focusing on how many new iPhones it has sold, Apple wants to now focus on how many iPhones are out in the world to show how vast its services business could be.

Toward the end of past year, when it became clear that the latest iPhones weren't selling as well as expected, the company launched an internal "fire drill" to encourage more people to upgrade.

While Apple has a few reasons to feel good about this quarter, there's at least one number in this release that feels troubling: Greater China revenue.

Apple is hoping its slew of new services will appeal to many iPhone users. While Apple had used Qualcomm chips for years in its phones, it avoided doing so in its latest lineup due to the litigation.

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