Apple publishes the growth of sales even when China’s business is cooled

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Roula Khalaf, publisher of the FT, selects her favorite stories in this weekly newsletter.

Apple announced on Thursday a robust growth in revenue, as the company is based on a few months tumultuous for the navigation of the President Donald Trump’s fare war with China.

The company registered a revenue of $ 95.4 million for the quarter of March 29, 5 percent year after year and a little above the consensus estimates of $ 94.6 million. Net income was $ 24.8 million, and also exceeded $ 24.5 million estimates and 5 percent of the same period last year.

The results reflect the period before Trump announced his “Liberation Day” rates on April 2, which he sent Apple Share slip. The iPhone-Maker, with its concentrated supply chains in Asia, is highly exposed to a trade war with China.

The iPhone income, Apple’s flagship product, was $ 46.8 million, up to 2 percent of the year.

China’s income slightly fell to $ 16 million, up to 2.4 percent, reflecting the competitive challenge that Apple has faced the local smartphone manufacturers in the last quarters. His service business, which includes App Store, ICloud and Apple Pay, continued to show a strong growth, increasing 12 percent to $ 26.6 million.

Apple actions fell around 2 percent in the negotiation after Thursday.

Apple’s financial manager Kevan Parekh told Financial Times that there was no short -term demand for the consumer’s demand to advance the April rates.

“For the March quarter, we do not think we had seen any strong outfit of a starting demand that would affect our results,” said Parekh.

Apple, he said, had been “working hard to optimize the supply chain and inventory” during the quarter to mitigate the potential impact of the rates.

In China, the company had seen an improvement in the previous quarter in its results, Parekh said, with “approximately flat” sales in adjusting to foreign currency changes. Apple China’s sales had fallen by 11 percent year -on -year in the previous year.

Apple stopped offering written orientation figures during the coronavirus pandemic, but investors are eager to understand how commercial tensions Could affect Apple’s business in the coming months and if it could finally increase its prices.

In his initial response, Apple has moved to increase Iphone assembly in India to prevent the steepest rates.

Although the administration has temporarily exempt smartphones in its 125 percent “reciprocal” rates in China, Apple is still affected by an existing 20 percent rate for Chinese imports.

More rates could also be seen by the end of this year, pending the results of a national security research on semiconductors and electronic products that contain them.

The Apple Council approved a 4 percent increase in its dividend and up to $ 100 million in shares rewards, in line with the previous year.