APPLE STOCK

AAPL up 5% despite warning of tougher quarter ahead


Early trading today has seen AAPL up by more than 6% following yesterday’s earnings report. The company had reported a mix of good news and bad, but investors seem happy…

Apple yesterday announced that its fiscal Q4 earnings were a record $90.1B in revenue, and $20.7B in profit.

Some of that was driven by the popularity of the iPhone 14 Pro models in early sales, with iPhone revenue up almost 10% year-on-year, but the bulk of this revenue will feed into fiscal Q1. CEO Tim Cook said that the company isn’t currently able to keep up with demand for the Pro models.

Mac sales contributed $11.5B, a rise of more than 25%. Wearables added $9.65B, also up by almost 10%. The only category to see a year-on-year drop in sales was iPad, which was down 13% to just over $7B.

Services enjoys continued growth, bringing it just over $19B, 5% up on the same quarter last year. Apple also shared that it has 900 million subscribers across its various subscription services, which include iCloud, Apple Music, Apple TV+, and more.

The company warned that the holiday quarter might be tougher than expected. He said that the company is not immune to the wider economic issues affecting much of the world, most notably a very high rate of inflation driven in part by large increases in energy costs.

Mac revenue is likely to suffer compared to last year’s holiday quarter, simply because the comparative quarter included the launch of the highly popular 14-inch and 16-inch MacBook Pro models.

Analysts had expected a little more than the company delivered, but none of this seems to have concerned investors. Speaking of analysts, Horace Dediu deserves a special shout-out, as his prediction of iPhone revenue was out by an amount equal to just half an hour’s sales! The overall winner was Morgan Stanley’s Erik Woodring, who was less than half a percent out on his revenue and EPS estimates.

Pre-market trading saw AAPL up and down, but this morning’s trading has seen a steady rise, to close to 7% at the time of writing.

FTC: We use income earning auto affiliate links. The sea.


Check out 9to5Mac on YouTube for more Apple news:





Source link

Naveen Kumar

Friendly communicator. Music maven. Explorer. Pop culture trailblazer. Social media practitioner.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button