Apple sold batteries at a $50 discount

The special iPhone battery replacement program that Apple (AAPL) introduced last year has entered its final month. To appease customers angered by its action that resulted in iPhones with older batteries slowing down, Apple decided to introduce a program that allowed customers to buy a replacement battery for their iPhones at a steep discount of just $29 instead of the usual $79. Apple announced the discount program on December 28, 2017, and said it would run through December 2018, meaning the program is now just a few weeks away from ending.

In the first full quarter since Apple introduced the special iPhone battery replacement discount, its revenue jumped 38% YoY (year-over-year) in the Other Products segment, under which battery sales are reported, compared to 31% YoY growth a year earlier. But the growth slowed to 37% YoY in the quarter that followed and slowed even further to 31% YoY in the most recent quarter, which ended on September 30.

Apple’s Year-Long iPhone Battery Discount Is Ending

Other Products revenue hit $4.2 billion

Since the discount meant Apple forgoing $50 of revenue for every replacement battery sold, the end of the discount period could see the company making more money in its Other Products segment if its restoring the regular battery price doesn’t slow demand. Apple’s Other Products revenue hit $4.2 billion in the September quarter compared to $3.2 billion a year earlier.

Core hardware business grew 20%

Growing at 31% YoY, Other Products was Apple’s fastest-growing revenue category in the most recent quarter, driving 20.2% YoY growth in the core hardware business. Alphabet (GOOGL), Twitter (TWTR), and Facebook (FB) grew their core advertising businesses by 23.8%, 29%, and 33% YoY, respectively, in the most recent quarter. Revenue jumped 27.6% YoY in Amazon’s (AMZN) core e-commerce business in the most recent quarter.

Latest articles

Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.

The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.

Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.

Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.

14 Jun

IEA Again Slashes Its Oil Demand Growth Estimate

WRITTEN BY Rabindra Samanta

As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.

14 Jun

Why Kimberly-Clark Stock May Stop Rising

WRITTEN BY Amit Singh

Kimberly-Clark (KMB) stock has risen 20.5% this year, boosted by the company’s better-than-expected sales and earnings during its last reported quarter. However, its stock could stop climbing. Here's why.

172.31.16.229