Technology Apple surprises markets with record results

Apple surprises markets with record results

-

Posted on Jan. 29, 2020, 6:03 a.m.

The party is not over. Markets welcomed Apple’s first quarter results, released on Tuesday.
The title

   , which had already pulled Wall Street and ended up sharply at the end of the day, gained even more than 2% in after-hours trading. Investors therefore seem reassured, after fearing to see Apple – whose
market capitalization doubled last year

   – enter the rank.

Apple released revenue up 8.9% year on year to $ 91.8 billion. A new record in this area. The group also increased profits for the first time in a year and a half, again setting a new record at 22.2 billion. Earnings per share stood at $ 4.99, when analysts expected $ 4.54.

Renewed interest in the iPhone

The new iPhone range, with the release of an iPhone 11 in the fall, at a lower price than its predecessors, has given a boost to Apple’s flagship product (more than half of turnover of the group). Phone sales reached nearly $ 56 billion in the quarter, up 7.6% from a year ago, as analysts were banking on stable sales.

And Apple continues to benefit from the
good health of other products

   , who took over from the iPhone. Revenues from the wearable activity, which includes headsets and headphones, iPods and connected watches, jumped 36% over the period.

Apple’s strategy on services seems to finally keep its promises. Again, the brand broke records, with sales of $ 12.7 billion in this segment, up 17%. The launch of a
credit card

    and
Apple TV + video streaming service

   helped boost the category, while music streaming and iCloud continue to break revenue records.

Higher forecasts

The outlook is thus positive again for the Cupertino firm, which has increased its sales forecasts for the current quarter, between 63 and 67 billion dollars (against previous analysts’ estimates of 62.4 billion) . “Uncertainties remain regarding the health situation (linked to the coronavirus, Editor’s note) in China,” acknowledged Apple’s chief financial officer, Luca Maestri. Several of the company’s subcontractors are based in Wuhan, the epicenter of the epidemic, but Apple says it can change suppliers quickly, if necessary.

While Apple has announced a dividend of 77 cents per share, the price should continue to appreciate in the coming weeks. The past year, despite regular sales, the markets had embraced Tim Cook’s service-oriented transformation talk. These results, which remain to be confirmed over time, should confirm it. Not to mention that rumors are becoming clear about the launch of a reduced-cost iPhone this year, and that the brand could launch its first 5G models in the fall.

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