Apple shares sail to record peak on strong report, but Greater China revenues fall
Revenue from Greater China down 9.5 per cent to US$8 billion
Apple announced in its quarterly earnings report on Tuesday that it’s in good shape as it heads into the fall, when the firm is expected to release its next models of its iconic smartphone. That includes a rumoured 10th-anniversary edition of the iconic smartphone, an “iPhone 8” or “iPhone X”, with an all-new design and a price tag that could top US$1,000.
It would have taken a pretty big miss to refocus analysts’ attention on anything but the new phone. But investors seemed pleasantly surprised by the results. In the minutes after the report, shares rose sharply, up more than 5 per cent from its closing price on Tuesday of US$150.05.
The tech giant beat expectations for both revenue and profit, reporting earnings per share of US$1.67 on US$45.4 billion in revenue. Analysts had expected earnings of US$1.57 per share on US$44.9 billion in revenue. The quarter is typically the company’s weakest.
The company’s net income rose to US$8.72 billion from $7.80 billion a year earlier.
The firm also reported that it sold 41 million iPhones, up slightly from the same period last year when sales hit 40.4 million, a welcome increase, as analysts and others have noted a sales drop-off for iPhones as consumer wait for the next big thing.
