How iPhone, iPad Saved Apple From Having a Bad Year

Apple CEO Tim Cook

Apple reported third quarter results that narrowly beat Wall Street estimates, easing concerns that supply chain snags and a shaky economy would ravage the tech giant’s sales.

Revenue rose 2% to US$83-billion in the period, which ended on 25 June, compared to an average analyst prediction of $82.8-billion. Earnings amounted to $1.20/share, topping the $1.16 projection. The company didn’t provide guidance for the fourth quarter, continuing an approach it adopted at the beginning of the pandemic.

Apple’s iPhone and iPad sales fared better than expected during the quarter, though other products — including Macs and wearables — fell short of projections. Services, a key growth area for Apple, narrowly missed estimates.

Apple CEO Tim Cook
Apple CEO Tim Cook

The iPhone numbers suggest that Apple is weathering a slowdown in smartphone spending

Still, the iPhone numbers suggest that Apple is weathering a slowdown in smartphone spending. The company also has shown it can navigate supply chain constraints fuelled in part by Covid-19 shutdowns in China. In April, Apple warned that the problems would erase $4-billion to $8-billion from third quarter revenue.

Against that backdrop, the latest numbers came as a relief. Apple shares gained more than 3% in extended trading.

Though it’s faring better than some tech peers, Apple has grown more cautious as it confronts a sputtering economy. The iPhone maker is planning to slow hiring and spending for some teams in 2023, it has been reported. Before releasing its results on Thursday, Apple’s stock had fallen about 11% this year, slightly outperforming the S&P 500 Index.

Read also : Apple in Downgrade Crisis, May Lose its $2-Trillion Market Valuation

Apple struggled to get enough supply last quarter after China’s Covid-19 precautions shut some factories and hamstrung deliveries. Those problems have eased but aren’t over.

China’s tough stance against the virus has led to some production restrictions for supplier Foxconn as recently as this week. The manufacturer, along with several others in the region, was forced to operate within a “closed loop” system for seven days. That means factory workers can’t have contact with people outside of their plants for that period.

Apple also had little in the way of new products to lure customers in recent months. The company released an updated iPhone SE in March and is expected to launch fresh iPhones in September, missing the quarter that just ended. Even so, that product generated $40.7-billion last quarter, beating estimates of about $39-billion.

Qualcomm added to investors’ concerns about the smartphone market on Wednesday, when the chip maker said consumers’ appetite for the devices had slowed. But the company said demand was particularly weak for low-end and mid-tier phones running Android, rather than the iPhone.

Last quarter’s sales from digital services like iCloud, AppleCare, Apple TV+ and Apple Music climbed 12% to $19.6-billion during the period. That made it Apple’s fastest-growing category, but the division came up shy of Wall Street predictions of about $19.7-billion.

Read also : African Health-tech Startups Invited To Apply For Digital Square Funding

Apple’s wearables, home products and accessories — the division that includes its smartwatch, HomePod, AirPods and Beats headphones — had sales of $8.08-billion last quarter. Wall Street had called for about $8.8-billion.

Apple generated $7.38-billion from the Mac, badly missing predictions of about $8.45-billion. The company launched new MacBook Pro and MacBook Air models in July, but those didn’t contribute to the latest results because the quarter ended in June. That means many consumers probably stopped buying the old versions of the products — Apple’s two most popular Macs — hurting that category.

The Cupertino, California-based company is planning a slew of new Macs over the next several months, including high-end MacBook Pros, an iMac, upgraded Mac minis and a revamped Mac Pro.

The iPad, which was a strong performer at the height of Covid-19 lockdowns, has been slipping back towards pre-pandemic levels. Still, it generated $7.22-billion last quarter, above the $6.93-billion estimate. The company last updated the iPad in March with a new iPad Air model with an M1 chip. And it’s planning faster iPad Pro models for later this year.

The ongoing Covid restrictions in China have sparked concerns about the effect on consumer spending. In a sign that Apple has had to get more aggressive in that market, it’s currently cutting the price of the iPhone, Apple Watch and AirPods in China for a few days as part of a rare sale.

Apple generated $14.6-billion from the country in the third quarter, down from a year earlier but better than analysts had projected. 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Iddris Sandu: The High Tech Genius Behind Uber, Instagram and Snapchat Algorithms

Iddris Sandu

When Iddris Sandu was in high school, he developed mobile software that would later gain the attention of former U.S. president Barack Obama and land him at the White House, where he received the honorary presidential scholar award. He was only 16 years old. Now 21, the Los Angeles-based young man is the unconventional tech guru who has accomplished many incredible feats, including being responsible for algorithms that have made Uber, Instagram, and Snapchat what they are today.

The software engineer considers himself a “cultural architect” and said he aims to “level the playing field” between Silicon Valley and young communities of colour. Born and raised in Harbor City, California with parents from Ghana, Sandu would never forget a harrowing experience he had when he was eight – his father had wanted to take him on a trip to Ghana.

Iddris Sandu

“But on the fourth day of the trip, he abandoned me in this village, took my passport and came back to the States,” Sandu told Oxford University’s Music and Style Magzine, adding that he was abandoned for almost nine months before getting into contact with an NGO which helped him travel back home.

He got back to the U.S. when the first-ever iPhone was unveiled, and this started his journey into the tech world. “I just got super inspired. I thought – this device is going to change the world.

The reason why the iPhone was so important was that it was the first time when regular consumers could develop for other regular consumers. Before, you really had to work at a tech company for multiple years to be able to offer any sort of input or to create an app. But Apple made it so mainstream. I knew it was the future,” he said.

Just 10 years old then, Sandu started learning to programme on his own for the next two years at a public library and this was where he got spotted by a designer from Google, who offered him an internship opportunity at the company’s headquarters. At age 13, he got his first experience with programming and worked on many projects such as the initial Google blogger, Google Plus, among others.

Yet, Sandu was determined to affect change; hence, at the age of 15, he designed an app for his high school that gave students turn by turn directions to navigate their classrooms. Being the only school in California that had an app made by a student, Sandu received wide acclaim that would later afford him a meeting with former President Obama.

During that same period, Sandu wrote an algorithm that he would go on to sell to Instagram and by the age of 18, he was already consulting for Snapchat before landing at Uber, where he created a software (Autonomous Collision Detection Interface) for its self-driving cars. With the passion to bridge the gap between the informed and uninformed, and to inculcate into young people like him the need for invention and creativity, he left major tech companies to bring that change.

“Information is one of the highest forms of class. And that is what keeps people divided. You should be able to think on a higher level, instead of being strictly consumers. And people of colour, in particular, are more likely to be consumers than creators. It’s really hard to get out of poverty or to change the structure of economic power if you’re always going to be a consumer rather than creating. Shifting that narrative is what I’ve been trying to do. And thus far, it’s worked, it’s successful.”

From encouraging the study of STEM subjects in schools and at higher levels, Sandu, in 2017, met rapper Nipsey Hussle at local Starbucks, and in three weeks, they had transformed an abandoned storefront in Los Angeles into the Marathon Clothing Store. The smart store offers exclusive music and other content to customers who have downloaded an app said The New York Times.

The store leveraged Iddris’ tech and design background and Nipsey’s cultural influences, sparking the interests of many journalists as well as hip hop and cultural icons like Russell Westbrook, Vegas Jones of Roc Nation, among others.

In an interview with the CNBC, Sandu said the store has helped him bridge the gap between culture and technology, and would love others to do same.“We are living in the digital revolution,” he said. Although “we are all constantly exposing ourselves to content in real-time.”

The tech wizard has since partnered with Kanye West and Jaden Smith on some future businesses, clothing lines and disaster relief projects that are set to launch in 2019, according to CNBC. Having created his own music, putting together the sonics and instrumentals in just 3 days to form a full album, the creative technologist is working on a book about recent initiators, including Kanye West; Robi Reed, a casting director; and Edward Enninful, the editor of British Vogue.

With the drive to use all his networks to empower young people in America to make a positive impact in their communities, the unconventional tech genius is already on his way to become a leader for the next generation of influencers and entrepreneurs.

 

 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

Facebook: https://web.facebook.com/Afrikanheroes/