Why Apple's services business is as big as a Fortune 500 company

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On the surface, revenue from iPhone sales, which rose by 14 per cent, looks strong.

Apple (NASDAQ:AAPL) last announced its quarterly earnings results on Tuesday, May 1st.

But Apple's traditional heartland of persona computers in the form of the Mac family of devices is under pressure.

With a mountain of overseas cash suddenly freed up by the tax overhaul, Apple bought back $23.5bn of its own stock in the March quarter, a record amount for any USA company, according to S&P Dow Jones Indices, and it added $100bn to its target for future repurchases. According to Mia Huang, a Taipei-based analyst at Trendforce, the production volume of the iPhone X fell significantly in the most recent quarter. This came as a surprise as there have been reports on the decline in shares of Apple in past few months.

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"My own view is that China and the US have this unavoidable mutuality where China only wins if the USA wins and the US only wins if China wins", Cook said."So I'm a big believer that the two countries together can both win and grow the pie, not just allocate it differently and so that's our focus over time I think that view will prevail". "Across all our services, paid subscriptions surpassed 270 million, up over 100 million from a year ago and up $30 million in the last 90 days alone, contributing to the overall increase in services revenue".

Of course, the iPhone ASP for the latest quarter was still higher than the same period past year, and this could be attributed to the iPhone X. But it also showed that iPhone X may be losing steam after seeing strong sales during the holiday season. The firm noted that the implied iPhone units in the coming quarterly guidance was higher than investor expectations, and iPhone X was the number one selling phone in China. However, there were still some signs of slippage in the iPhone's fortunes seen within the results. Apparently, this has been the case since it launched, despite the $999 minimum price tag. Also, insider Philip W. Schiller sold 69,491 shares of the stock in a transaction dated Tuesday, April 3rd. Its manufacturer Wistron already has a unit in Bengaluru's industrial hub of Peenya where it has been assembling the low-priced iPhone SE since past year.

Of course, this is only a rumour at present, and it's perfectly possible Apple will not offer this free of charge to new iPhone customers. Aluminum maker Alcoa ranked 300th on the Fortune 500 this year, with annual revenue of over $9 billion. Fears about a weak iPhone X demand coupled with a slowdown in the Chinese smartphone market had caused a massive sell-off in Apple stock. The shares were sold at an average price of $174.66, for a total transaction of $6,833,048.52. Buoyed by the fact that more Indians are set to move into the middle class, Cook said he will now put great energy into the growing domestic market. The statement is important in light of the data leaks being revealed at Facebook. You're not our product.

On a call with financial analysts, chief executive Tim Cook dismissed concerns about soft demand for smart phones, pointing to the millions of people who still do not own one. President Donald Trump at the White House to discuss trade matters.