IPhone sale projections boost Apple shares
Apple shares jumped in extended trading after the company projected sales suggesting consumers are continuing to snap up the company’s high-end iPhones even as updated models are on the horizon.
The Cupertino, Calif.-based technology giant projects fiscal fourth-quarter revenue between $60 billion and $62 billion. Analysts were looking for $59.4 billion, according to data compiled by Bloomberg. Fiscal thirdquarter results also beat Wall Street expectations.
Apple’s stock gained 12 percent this year though Tuesday’s close — before the results were announced — putting the iPhone maker on a path to become the first U.S.-based company with a market value of $1 trillion.
“These results and guidance will increase investor confidence,” Shannon Cross of Cross Research wrote in a note to investors. “We expect the vast majority of Apple’s product line-up to be refreshed during the next couple of quarters which should support near-term results.”
More than a decade after its debut, the iPhone is still Apple’s most-important product, accounting for about 60 percent of revenue. While unit sales have slowed recently, the company is building digital services and a suite of other gadgets around the device. Those newer businesses, along with higher iPhone prices, have supported revenue growth.
Apple’s fiscal fourth-quarter outlook is closely watched because this is usually the period when the company unveils new iPhones. The company is expected to launch three new phones later this year.
Fiscal third-quarter sales rose 17 percent to $53.3 billion, Apple said. Profit came in at $2.34 per share. Analysts expected revenue of $52.4 billion and earnings of $2.18 a share.