Ap­ple’s fore­cast hints at iPhone hopes

Northwest Arkansas Democrat-Gazette - - WEATHER REPORT - ALEX WEBB

Ap­ple Inc. on Tues­day pro­jected rev­enue in the cur­rent quar­ter that topped an­a­lysts’ es­ti­mates, sig­nal­ing strong sales of new iPhones sched­uled for re­lease later this year.

Rev­enue will be $49 bil­lion to $52 bil­lion in the three months through Sep­tem­ber, the Cu­per­tino, Calif.-based com­pany said in a state­ment. An­a­lysts pro­jected $49.1 bil­lion.

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 pro­jec­tions on con­cern the new high-end iPhone may be de­layed, but Ap­ple’s fore­cast on Tues­day calmed those fears.

“We’ve put ev­ery­thing we know into com­ing up with the guid­ance,” Chief Ex­ec­u­tive Of­fi­cer Tim Cook said on Bloomberg Tele­vi­sion. “We re­ally like what we see for the be­gin­ning of the back-to-school sea­son.”

Ap­ple’s shares jumped more than 6 per­cent in ex­tended trad­ing Tues­day after clos­ing at $150.05 in New York. That put the stock on course to open to­day at a record. Shares have climbed about 30 per­cent this year.

Ap­ple re­ported fis­cal third-quar­ter profit of $8.7 bil­lion, or $1.67 a share. Rev­enue in­creased 7 per­cent from last year to $45.4 bil­lion.

Sales in Greater China, which in­cludes Hong Kong and Tai­wan as well as the main­land, fell 9.5 per­cent from a year ear­lier to $8 bil­lion. Ex­clud­ing cur­rency ef­fects, sales on the main­land were un­changed, with the big­gest de­clines recorded in Hong Kong, Cook said in an in­ter­view.

“The re­sults were very en­cour­ag­ing,” he said. “We were down to hav­ing an is­sue solely in Hong Kong.”

The com­pany sold just more than 41 mil­lion iPhones in the quar­ter that ended July 1, gen­er­ally in line with the 41.1 mil­lion es­ti­mated by an­a­lysts, ac­cord­ing to data com­piled by Bloomberg.

Ap­ple gen­er­ates al­most two-thirds of its rev­enue from the iPhone.

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