Apple sees resilient demand
Revenue may reach US$52bil in the three months through September
SAN FRANCISCO: Apple Inc gave a revenue forecast that highlighted resilient demand for the iPhone ahead of the launch of its new models and the growing significance of the company’s supporting businesses.
New iPhones typically go on sale in mid- to late September, which produces a few weeks of revenue that are included in the company’s fiscal fourth-quarter results.
Some analysts had reduced their estimates on concern the new highend iPhone may be delayed, but Apple’s projections on Tuesday – and increasing sales of other products and services – calmed those fears.
Revenue will be US$49bil to US$52bil in the three months through September, the Cupertino, California-based company said in a statement. Analysts had predicted US$49.1bil.
“We’ve put everything we know into coming up with the guidance,” chief executive officer Tim Cook said in an interview with Bloomberg Television. “We really like what we see for the beginning of the back-toschool season.”
The company sold just more than 41 million iPhones in the quarter ended July 1, a 1.6% increase from a year earlier and generally in line with analysts’ estimates.
Fiscal third-quarter revenue rose 7.2% to US$45.4bil compared with the average projection of US$44.9bil. Every product category grew, driven by services such as the App Store. Apple even sold 15% more iPads, a product that seemed out of fashion not that long ago.
Apple’s shares jumped more than 6% in extended trading after closing at US$150.05 in New York. That put the stock on course to open at a record. Shares have climbed about 30% this year.
“There is some relief from the fear of a significant pause before the 10th anniversary iPhone refresh,” said Michael Obuchowski, chief investment officer at Merlin Capital LLC in Boston, which holds Apple stock. “I’m beginning to think it won’t matter if the new iPhones aren’t that exciting.”
Apple is likely to introduce three new handsets this year: a revamped top model, known for now as the iPhone 8, and upgrades to the existing iPhone 7 and iPhone 7 Plus, people familiar with the plans have told Bloomberg News.
The high-end iPhone will include an organic light-emitting diode screen, and inadequate OLED supplies mean that it would not be as readily available as the cheaper handsets at launch, the people said.
Cook said reporting about the new versions of the iPhone “has created a pause” in consumer buying “that is likely larger than previously.”