Apple Analysts Offer Mea Culpas After iPhone Sales Hold Up
- Author: Valerie Cook May 03, 2018,
May 03, 2018, 14:12
Apple's share price surged more than 4 percent to US$176.57 on Wednesday, giving the company a market capitalization of US$895 billion. The Cupertino company also was more optimistic about the current quarter than most financial analysts, driving shares up 3.6 percent to $175.25 after hours. It was driven by $52.2 million iPhone shipment. iPhone X has got half of its credits for which made revenues high.
That came on top of $22.8 billion in buybacks executed in the prior quarter, "a record amount for any issue in any quarter", analyst Howard Silverblatt said. While it stood at $617 in April-June quarter past year, it rose to $658 in July-September quarter, going up further to $756 in October-December, 2017 to an all time high of $763 in the January-March quarter, 2018.
Apple also saw a growth in sales and revenue for its iPads. Company gross margins represents its total sales revenue minus its cost of goods sold (COGS), divided by the total sales revenue earned by the company, expressed as a percentage.
"Customers chose iPhone X more than any other iPhone each week in the March quarter, just as they did following its launch in the December quarter", said Cook.
Bloomberg has the details on how Apple has shared the wealth in recent times.
Other companies have also been using their tax-cut cash to reward shareholders.
Navkendar Singh, associate research director in research firm IDC, said, "Apple's commentary signals the importance of India as a market and its efforts to expand its footprint in the country as markets like China have slowed down for them". To the surprise of most Wall Street analysts, Apple earnings came in stronger than their projections due to solid iPhone sales.
Cook admits that while Apple's market share in India is very low, it had the best results there in the second quarter.
Julie Ask, an analyst with Forrester, said Apple's services segment results were positive but warned that Apple needs to continue to boost subscriptions on its platforms, which reached 270 million users in the March quarter and includes people who subscribe to third-party apps on the iPhone as well as Apple's own services like iCloud.
Follow Apple's stock price in real-time here. "And the infrastructure has come quite a ways since we began to put a lot of energy in there due to their leadership and so forth", he said. And though Citigroup removed the equity from its US focus list, it reiterated its "buy" rating, and said "the negativity on Apple stock is overdone".
Apple had been seen as being under particular pressure from cheaper rivals as the iPhone 8 range and the 10th-anniversary edition iPhone X received lukewarm reviews.
Revenue for Apple in China rose 21% from a year earlier, which allayed fears that consumers are avoiding expensive iPhones in favor of local handset makers like Oppo and Vivo.
On whether the Indian market was saturated, Cook said: "I do not buy the view that market is saturated".