Apple’s financial results released Tuesday were not a cause for praise for the American company. Earnings have increased, but profit fell, as well as sales of iPads. However, Apple and its investors have a reason to rejoice. Number of iPhones sold surpassed all expectations on Wall Street, writes New York Times.
Most devices were sold in the United States, which has compensated for other major overseas markets like China. The company shipped 31.2 million iPhones, up from 26 million sold in the same period of last year. It is a record for the third quarter from Apple (NASDAQ:AAPL). The company said it currently has $146.6 billion in cash and other assets from the market. Apple shares were up 5.8 percent around 11:30 AM (EST) to $443, giving the company a market capitalization of $402 billion.
Revenues have climbed above expectations to $35.3 billion, but the increase is very low, considering that revenues last year were $35 billion. Instead, the company’s overall profit fell 22 percent compared to the same period last year, while the average selling price of the products also declined, from $608 to $581. Sales of iPad Mini and Mac computers were also disappointing, compared to the figures estimated by analysts.
Analysts argue that the positive trend recorded in the iPhone segment could calm market fears to some extent, on the growth rate of Apple.
“The iPhone number should provide some comfort to investors who were worried about smartphone demand. That’s one of the reasons the stock is up. Expectations were not strong for this quarter, “said Shannon Cross of Cross Research, quoted by BBC.
Tim Cook told investors to remain optimistic about the situation in China, a market which has been referred to as “a huge opportunity for Apple” and not to be discouraged by a report for a period of 90 days which has been affected by economic factors.
On the other hand, Apple’s competitors are not doing any better in Asia, as both Microsoft and Google were missing growth forecasts from analysts.
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