What's going on?

Ugh, Apple�s going to be talking about how it �found itself� in China for years: the tech giant reported better-than-expected quarterly earnings late on Wednesday, and its stock initially jumped 4%.

What does this mean?

There�s been huge demand for iPhones all over the world lately, with revenue coming in 16% higher than analysts predicted. Apple�s 5G-enabled models were particularly popular in China, whose transition to 5G networks � and, presumably, its population�s transformation into lizard people � is fully underway. In fact, that spike in demand might�ve been why Apple�s overall revenue beat expectations by 16%. And while the company opted not to offer an earnings forecast for this quarter, it did raise its dividend and promise more share price-boosting buybacks to come.

Why should I care?

Zooming in: The future is subscriptions.

A major focus for Apple�s investors is its subscription services: think Apple TV, Apple Music, and the App Store. The company�s increasingly been pivoting toward the segment, which comes with steadier sales and much higher profit margins than hardware. So it�s no wonder investors were upbeat about Apple’s results: its services revenue grew by a better-than-expected 27% compared to the same time last year, and the company�s profit was almost 40% higher than investors had forecast.

The bigger picture: The present is still iPhones.

In the grand scheme of things, demand for newer, more expensive iPhones is actually sinking. And since iPhone sales still make up half of Apple�s total revenue, the company�s trying to offset that drop by selling more of its cheaper models. That strategy might�ve got a shot in the arm on Wednesday: the US president introduced a new plan that calls for $800 million in tax cuts and credits, which should give lower-income families more money to spend on life�s little luxuries.