$1 trillion market cap Apple says a big swing in a behind-the-scenes tech pricing will boost future earnings

$1 trillion market cap Apple says a big swing in a behind-the-scenes tech pricing will boost future earnings

6 years ago
Anonymous $oIHRkISgaL

https://www.cnbc.com/2018/08/02/apple-stock-a-sleeper-tech-pricing-trend-will-boost-future-earnings.html

Apple reached a $1 trillion market cap on Thursday after reporting strong earnings earlier this week, the first company to reach that milestone, and with results up for a number of reasons — sales of its higher-priced iPhone X and its booming services business, among them. But there is another underappreciated earnings tailwind that the technology giant expects to help earnings over the next year: the fast-falling price of memory chips.

Its strong third-quarter earnings had Wall Street gushing, and in the earnings call on Tuesday afternoon, Apple CFO Luca Maestri highlighted the weakened price of memory chips, which should significantly reduce tech companies' costs over the next year and reverse from a headwind to a tailwind for results.