Apple iPhone sales trample expectations as profit sets global record
by admin | Posted on Wednesday, January 28th, 2015
An iPhone 6 phone is seen on display at the Fifth Avenue Apple store on the first day of sales in Manhattan, New York September 19, 2014. CREDIT: REUTERS/ADREES LATIF
(Reuters) – Apple Inc (AAPL.O) quarterly results smashed Wall Street expectations with record sales of big-screen iPhones in the holiday shopping season and a 70 percent rise in China sales, powering the company to the largest profit in corporate history.
The company sold 74.5 million iPhones in its fiscal first quarter ended Dec. 27, while many analysts had expected fewer than 70 million. Revenue rose to $74.6 billion from $57.6 billion a year earlier.
Profit of $18 billion was the biggest ever reported by a public company, worldwide, according to S&P analyst Howard Silverblatt. Apple’s cash pile is now $178 billion, enough to buy IBM (IBM.N) or the equivalent to $556 for every American.
Apple Chief Executive Officer Tim Cook said the Cupertino, California-based company would release its next product, the Apple Watch, in April.
Shares rose about 5 percent to $114.90 in after-hours trade.
Daniel Morgan, senior portfolio manager at Apple-shareholder Synovus Trust Company in Atlanta, Georgia, said that the report was a good sign in a quarter where big tech companies such as IBM and Microsoft Corp (MSFT.O) have disappointed.
Apple Chief Financial Officer Luca Maestri told Reuters in an interview that the company did not sell more iPhones in China than the United States, despite some earlier predictions by research analysts.
But the big-screen iPhone 6 and 6 plus drove revenues in China were up 70 percent in the quarter from a year earlier. The company’s success in the competitive Chinese market can be attributed to its partnership with China Mobile Ltd (0941.HK), the largest global mobile carrier, and the appeal of the larger screen size of the iPhone 6 and 6 Plus.
Maestri said he does not expect Apple to struggle because of China’s slipping economic growth. “We haven’t seen a slowdown,” he added.
Maestri also said the company doubled iPhone sales in Singapore and Brazil.
Apple will reach 40 company stores in greater China by mid-2016, Maestri told analysts on a conference call.
Carolina Milanesi, an analyst with Kantar Worldpanel ComTech, also lauded a 14 percent rise in unit sales of Apple Macintosh computers and sales of older iPhone models.
Apple was well positioned for the current quarter in China, she added, which will include the Chinese New Year holiday and reflect Apple’s attempts to sell through new channels.
Apple reported net profit of $18.02 billion, or $3.06 per diluted share, compared with $13.07 billion, or $2.07 per share, a year earlier. That topped expectations of $2.60 per share, according to Thomson Reuters I/B/E/S. Analysts had expected revenue of $67.69 billion.
Maestri said that Apple faced “a clear headwind” from the strong dollar but that it had included the challenge in its forecasts. Apple predicted revenue of $52 billion to $55 billion in its fiscal second quarter, compared with Wall Street’s average target of $53.79 billion.
Cook said that the company’s new mobile payment service, Apple Pay, which lets customer buy products from select merchants with their phones, was in its “first inning” and the company would consider adding new features as it looked at expanding outside the United States.
(Reporting by Christina Farr in San Francisco; Additional reporting by Supantha Mukherjee in Bengaluru and Caroline Valetkevitch in New York; Editing by Peter Henderson, Ted Kerr and Lisa Shumaker)
by Marje Pelayo | Posted on Wednesday, June 19th, 2019
MANILA, Philippines – Defense Secretary Delfin Lorenzana maintained that the incident in Recto Bank involving the Chinese vessel, Yuemaobinyu 42212 and the Filipino fishing vessel, F/B GEM-VER 1 on June 9 was not an armed attack but only an accident.
“I think it’s just an accident based on the information we got from some of the crew. Siguro hindi rin sinasadya ng kabila (Perhaps it was not intentional),” Lorenzana said.
Since it was such, Lorenzana said he agrees with Malacañang that the Philippines cannot insist its mutual defense treaty with the United States to deal with the present issue because such treaty applies only to armed conflicts.
Lorenzana was the first to disclose the report on a Chinese vessel hitting and sinking a Filipino fishing vessel in the contested area in the West Philippine Sea.
The Defense Chief condemned the Chinese crewmen for abandoning the 22 Filipino fishermen adrift at sea while struggling to survive.
The Department of Foreign Affairs (DFA), through Secretary Teddy Locsin, has already elevated the matter to the International Maritime Office (IMO).
But though Lorenzana supported Locsin for that matter, the Defense Secretary said the Philippine government can only act once all the needed information is gathered specifically China’s official statement on the incident.
For now, the government is pursuing a case against the Chinese crewmen for abandoning the Filipino fishermen which, the Secretary said, is a violation of the International Convention for the Safety of Life at Sea (SOLAS) and the United Nations Convention on the Law of the Sea (UNCLOS) to which the Philippines and China are both signatories.
While waiting for China’s side on the matter, Secretary Lorenzana appeals to the public to be patient as the government works on resolving the issue while extending assistance to the affected fishermen.
“I ask our countrymen to be patient dahil lalabas naman talaga ang totoo kapag nakuha na natin ang lahat ng (the truth will come out once we have all) information so that we can move on from this,” he said. (with details from April Cenedoza)
by Robie de Guzman | Posted on Tuesday, June 18th, 2019
Twelve people died and another 125 were injured as of 08:30 Tuesday after two earthquakes hit southwest China’s Sichuan Province on Monday night, according to China’s Ministry of Emergency Management.
A 6.0-magnitude earthquake hit Changning County of Sichuan’s Yibin City at 22:55 Monday and another 5.1-magnitude earthquake occurred in Yibin’s Gong County at 23:36 Monday, according to local authorities. Ten villages and towns have been severely affected by the earthquakes.
“The earthquakes also damaged some houses, roads, power and communication facilities,” said Secretary General of the Yibin government Li Tinggen at a Tuesday press conference.
Li said Yibin has started an emergency response and 2,016 rescuers have been dispatched to alleviate the disaster.
“The city and counties quickly allocated all kinds of relief supplies from their disaster relief material repositories to affected villages and towns. At the initial stage, 450 tents, 5,300 quilts and 1,500 folding beds have been sent to affected areas,” Li said.
Yibin has started evacuation and relocation of local people and carried out medical aid for injured ones, Li said.
“After the earthquakes, the city and counties quickly dispatched 15 vehicles and 61 medical specialists with first aid equipment to the quake-stricken areas in order to treat the wounded.
All health centers of villages and towns in the epicenters conducted medical treatment for injured ones immediately after preliminary safety check of their buildings,” Li said. (REUTERS)
by Marje Pelayo | Posted on Tuesday, June 18th, 2019
MANILA, Philippines – The United States Defense Department in a report revealed that China has long been establishing its power and expanding its domain even as early as 2002.
According to the US Defense Department’s 2018 Annual Report to Congress, the 21st century’s initial two decades are described as China’s “period of strategic opportunity”.
“They assess that international conditions during this time will facilitate domestic development and the expansion of China’s “comprehensive national power,” the report said.
According to the US, this is part of the Chinese Communist Party (CCP) measure to support President Xi Jinping’s “China Dream of national rejuvenation” aimed at establishing “a powerful and prosperous China.”
Part of the plan is to mobilize maritime militia specifically the People’s Armed Forces Maritime Militia (PAFMM) which is an armed reserve force composed of civilians.
China is the only nation in the world that has a government-sanctioned maritime militia which vary in composition and mission depending on a specific unit and location.
Based on the report, “PAFMM plays a major role in coercive activities to achieve China’s political goals without fighting” specifically in relation to movements in the South China Sea.
It is guided by China’s military doctrine which states that “confrontational operations short of war can be an effective means of accomplishing political objectives.”
PAFMM has been involved in a number of confrontations at sea such as 2009 harassment of the USNS IMPECCABLE Surveillance Ship; the Scarborough Reef standoff in 2012; the Haiyang Shiyou-981 oil rig standoff in 2014; and the surge of large ships in waters near Senkakus Islands near Japan in 2016.
The US report said China uses its maritime militia for purposes of surveillance, logistical support, and for search and rescue operations.
In the past, China used to rent small fishing vessels from local fishermen or private fishing firms to execute its objectives but later on, China decided to build state-owned sea vessels for that purpose.
For instance, the Hainan provincial government in 2016 built 84 large fishing vessels with fine-scale features and built-in arsenal.
The government even reinstated into reserve force newly retired military personnel complete with subsidy and monthly salary.
In his speech during the anniversary of the Philippine Navy, President Rodrigo Duterte implied that the Philippines cannot and will not win any war against China given the latter’s maritime and armed capabilities.
The President’s remark was in relation to the recent incident in Recto Bank that involved a Chinese vessel which allegedly hit and caused a Filipino fishing boat to sink, endangering the lives of 22 Filipino fishermen.
“Iyang nangyari diyan sa banggaan, that is a maritime incident. Huwag kayong maniwala diyan sa mga politiko na bobo na. Gusto papunta ‘yung — papuntahin ‘yung Navy. You do not send grey ships there. Banggaan lang ng barko ‘yan.,” President Duterte stressed.
(The collision that happened, that is a maritime incident. Do not be swayed by politicians who insist on sending Navy personnel there. You do not send grey ships there. That was mere collision of sea vessels.)
“Do not make it worse because there is a — that’s a fertile ground for…And we are not yet as ready. And we can never be ready in a nuclear war. Stay out if trouble,” he added.
The Philippines in the past has attempted a show of force against China in the disputed waters in West Philippine Sea.
In 2012, BRP Gregorio Del Pilar was mobilized to man the Philippine territory in WPS when a Philippine Navy surveillance plane spotted several Chinese fishing vessels anchored in Panatag Shoal.
Panatag Shoal is about 124 nautical miles from the coast of Zambales and is part of the Philippines’s exclusive economic zone (EEZ). (with reports from Rey Pelayo)
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