Apple Beats on Earnings With Record Revenue But iPhone Sales Miss

Consumer electronics giant Apple reported December financial results on Thursday after the market close. $AAPL beat consensus estimates for revenue and earnings but missed on both iPhone unit sales and guided for the March quarter.

Consumer electronics giant Apple reported December financial results on Thursday after the market close. $AAPL beat consensus estimates for revenue and earnings but missed on both iPhone unit sales and guided for the March quarter.

IPhone 8

iPhone Sales Miss in Units But Revenues Soar

Apple Inc NASDAQ: $AAPL

After Hours 172.01 ▲ 4.23 (+2.52%)

Earnings

Apple reported earnings per share of $3.89, up 16% year over year, on sales of $88.3 billion, up 13%, for its fiscal first quarter. The results beat analysts expected earnings of $3.82 a share on sales of $86.29 billion.

Revenues rose across the globe

  • Americas rose 10% year-over-year to $35.19 billion 
  • European sales rose by 14% to $20.05 billion.
  • Greater China sales rose 11% to $17.96 billion

Apple Chief Executive Tim Cook “We’re thrilled to report the biggest quarter in Apple’s history, with broad-based growth that included the highest revenue ever from a new iPhone lineup,” Apple Chief Executive Tim Cook said in a news release.

Cook said in January, Apple achieved an installed base of 1.3 billion devices, and “That’s an increase of 30% in just two years, which is a testament to the popularity of our products and the loyalty and satisfaction of our customers” .

iPhone Sales and Guidance Miss

Apple sold 77.3 million iPhones last quarter much lower than. consensus expectations for 80 million. For the March quarter, Apple lowered expectations with iPhone sales of $60 billion to $62 billion, missing Wall Street’s target of $65.4 billion. It should be noted that analysts had for the most part expected Apple to guide down for the March quarter, based on evidence of a slowdown in sales of the company’s high dollar iPhone X smartphone.

“IPhone X surpassed our expectations and has been our top-selling iPhone every week since it shipped in November.” Apple Chief Executive Tim Cook said

“We’re thrilled to report the biggest quarter in Apple’s history, with broad-based growth that included the highest revenue ever from a new iPhone lineup,” Apple Chief Executive Tim Cook said in a news release. In January, Apple achieved an installed base of 1.3 billion devices, Cook said. “That’s an increase of 30% in just two years, which is a testament to the popularity of our products and the loyalty and satisfaction of our customers,” he said.

Preview of AlphaGraphic

In 2017 Apple outperformed since the Donald Trump Election victory there has been a run higher on Apple, this in turn has helped fuel the run in the S&P 500, Nasdaq and Dow Jones Index to Record highs.

How Much Will Component Cost Rises Effect Profit Margins

For the same reason we have seen NVidia, Intel, Micron and ADM Micro shares surge it is not good news for Apple,  it affects their margins.  The chip stocks have benefited from the demand for DRAM and NAND chips. Demand from Gaming and digital currencies have added to already strong demand from smartphones and cloud computing.

Source: Apple, TradersCommunity, AlphaStreet

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