Analysis of Apple Earnings, hype builds for new iPhone

by WarriorForum.com Administrator
2 replies
A new article on Forbes reports on Apple's post-earnings, and how the upcoming new iPhone will affect shares and investors.



Apple Inc shares were trading lower than usual, by about 4%. However, that result was somewhat expected as investors are waiting for the upcoming iPhone 12, which brings much-anticipated 5G technology to users' hands, delivering lightning-fast mobile internet speeds. Investors are counting on 5G to raise the prices of AAPL shares.

What were Apple's Revenue numbers?

Revenue numbers churned out mixed results for the two trillion-dollar company. Total revenue stood at $64.7 billion, roughly 1.6% greater than the predicted $63.7 billion. In terms of earnings per share, they were also higher than expected by 4.3%, costing $0.73 per share as opposed to $0.70. iPhone revenue saw a substantial dip, probably due to customers holding off on purchasing new phones, as the next generation models are just around the corner - and totaled out at $26.4 billion, falling short of the 27.9 billion estimates.

The new iPhone 12 and investors

The new iPhone 12 and investors, it's estimated that iPhone sales in Q1 of next year will increase by 6.5% when compared to 2020 figures. In fact, Q1 2021 s predicted to hit $59.6 billion, and such positive estimates have got investors in AAPL expecting bumper returns.



Apple Shares vulnerable to dip

The coming iPhone 12 is highly anticipated, and while that's excellent news for investors in Apple Inc, it's also causing high levels of vulnerability for AAPL shares. However, if the new iPhone exceeds expectations on the opposite side of the coin, then share prices could go through the roof, possibly resulting in top-line growth for a few years.
#analysis #apple #builds #earnings #hype #iphone
Avatar of Unregistered
  • Profile picture of the author hustlertrends
    The actual hardware is irrelevant now. They make most of their profit from gate-keeping with their app store. Add in their Rrundle (recurring revenue bundle) and this is where their actual shareholder value comes from. They are now also competing with Google on search. Lookin in the wrong places for value friend!
    {{ DiscussionBoard.errors[11631269].message }}
  • Profile picture of the author Matthew Stanley
    Their decline in revenue from China (-29%) was pretty significant. Apple believes this was due to the delay in the iPhone 12 ... so next quarter's results should be pretty revealing. If the year over year growth there is strong, suggests China is just a very iPhone-centric market where customers strongly clamor for the *newest* version. But if the results are muted, could spell bigger problems for Apple, as that would suggest Apple could be in long-term decline in Greater China ..
    {{ DiscussionBoard.errors[11631347].message }}
Avatar of Unregistered

Trending Topics