Apple stock pops 6% on optimism for iPhone 8 sales


Apple stock pops 6% on optimism for iPhone 8 sales

For the fourth quarter of 2017 Apple said it expects to post revenues in a range of $49 to $52 billion with a gross margin of between 37.5% and 38%. The Other Products division, which includes Apple TV and Apple Watch, grew to 2.7 billion dollars (2.3 billion euro) and the company wants to expand these divisions over the next few years, in an attempt to lower its iPhone dependency.

Apple's September-quarter sales forecast implies that the company will not be late with the iPhone 8 launch, as has been rumored, RBC Capital Markets analyst Amit Daryanani said in a report titled "What iPhone Delay?"

"We're very excited about the advances in iOS, macOS, watchOS and tvOS coming this fall", the successor to Steve Jobs stated.

Apple's Services business, which includes iTunes and the App Store, continues to be a bright spot, and was its fastest growing by year-over-year change in revenue. Sales of iPads have been slipping for more than three years, but unit sales jumped 14.8% over the quarter to 11.4m. Apple sold 45.51 million iPhones in the year-ago quarter. Services sales rose 22% year over year and 3% sequentially to $7.27 billion. Finally, "other products" saw a 23% increase in revenue, from $2.219 billion to $2.735 billion. How long it will last remains to be seen, but it has helped to draw attention away from lackluster iPhone sales, which at 41 million, hung on into growth territory by only a couple of percentage points.

"Not only is $7.3 billion in revenue hugely significant in its own right, it underlines the ecosystem advantage it has over its competitors outside of China".

Overall, Apple's overall revenues were $45.4bn (£4.3bn), with net quarterly profit of $8.7bn. On recent earnings calls, CEO Tim Cook has complained that speculation about Apple's plans for a premium tenth-anniversary iPhone in September may be causing potential iPhone buyers to hold off from buying a phone from its existing offerings.

According to The Verge, leading the way was Apple's iPad sales, which were up 15 per cent from 2016.

The shares were up more than 5.8% in after hours trading at around 7am Sydney time, pushing the company's value to more than $US830 billion which would be the highest ever.

Latest News