Off the back of Apple's earnings, JPMorgan has distributed its latest analyst report on the company's outlook. Cook was also optimistic on the environment in China saying, "As I mentioned in my comments, our retail and online stores did well overall and in China".
"If we see Apple downplaying expectations before the next upgrade cycle, it might mean that the company isn't confident it will beat those expectations", he added.
As Apple's stash of cash grows, so does the possibility that the world's most valuable company will use some of the money for a huge acquisition that would expand its empire beyond iPhones and other gadgets.
Cook also said Apple plans to fund programs that could include teaching people how to write computer code to create apps, and will release more details about the effort this summer. Insiders have sold a total of 342,952 shares of company stock worth $45,967,691 in the last three months.
He visited India past year and met prime minister Narendra Modi; Apple's senior vice president of worldwide marketing, Phil Schiller, visited last quarter to inaugurate a developer centre.
Net income of $11bn, up five per cent from $10.5bn in the year-ago quarter.
This compares with 51,193 units sold previous year and revenues of $32.5bn in the second quarter of 2016. Wall Street expected earnings of $2.02 per share on revenue of roughly $53 billion. He noted that the product is "still very much in the ramping mode". In the past year, Apple shares are up more than 50 percent. Its shares look overvalued trading around 5.8 times to book value and 3.7 times to sales, compared to the industry average of 4.5 and 2.7 times, respectively.
"In our view, consumers are becoming aware of the product cycle and we believe this should cause increased seasonality in the product as consumers await updated and fully remade iPhones", said Amit Daryanani, an analyst at RBC Capital Markets. "We saw that in the March quarter and expect that to continue into the June quarter, but for all the other commodities, we see prices declining", Maestri said.
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