By David MacDonald A s monthly internet prices hit record highs across North America, it turns out we’re spending less (fre- quently) on new hardware like smart phones says a Thomson Reuters report from early May. Apple, among other tech giants, is taking this opportuni- ty to breathe and, for a lack of better terms in the age of acknowledged shared-blame technological obsolescence, commiserate with its investors. “In recent months, Apple has been emphasizing the size of its overall user base, which includes used iPhones, rather than focusing strictly on new device sales, a sign of the increasing importance of making money off users without selling them new hardware,” the report says. But TimCook, Apple’s CEO, isn’t done polishing the brand’s image after a cold reception by consumers to the iPhone X earlier this year. Cook has been on a publicity tour touting his company’s contributions to the US economy and “out- lining a $30 billion US spending plan and highlighting the tens of billions of dollars it spends each year with US-based suppliers.” Apple’s attempt at a domestic renaissance coincides with developing trade tensions with China, the report says. Under Cook, Apple has increased its capital return program by USD 100 billion and has reportedly bought USD 23.5
billion of stock back in the March quarter alone. Many inves- tors see it all as proof that Apple is committed to “bringing back most of its hundreds of billions of dollars in cash to the United States.” In the days after Cook’s announcement, Apple profits rose to USD 2.73 per share, well ahead of the USD 2.68 predic- tions and dramatically better than the USD 2.10 per share showing four quarters ago. This is encouraging for many investors moving forward who saw Apple’s pulling of iPhones from many store shelves after the holidays as a retreat of sorts. According to Reuters, average selling prices for iPhones were $728 US in April, compared with Wall Street expectations of $742 US at a time when Apple is focused on “higher-end models.”
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SPOTLIGHT ON BUSINESS MAGAZINE • MAY 2018
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