Apple Share Price Rises 5% Taking Value Back Above $1 Trillion
Apple’s share price gained 4.9% yesterday, and at one stage was up around 6% to briefly take the iPhone maker’s valuation back above $1 trillion for the first time since early November last year. The rally was brought on by a positive earnings report that showed iPhone sales numbers have
Apple investors will have been happy to hear the company’s Chinese sales figures have shown notable improvement over the most recent quarter. Downward adjustments to sales prices and the introduction of new
Apple’s Greater China sales figures were, at $10.2 billion over the most recent quarter still 22% lower than over the same period of 2018. However, the figures marked an improvement on the 27% downturn recorded over the previous 3 months when compared with a year earlier.
Another major positive for the company was the relatively slower than
Apple’s overall revenue over the previous quarter was, at $58 billion, 5% lower than a year earlier, in line with its previous three months and roughly in line or very slightly ahead of analysts’ consensus forecast. It would have been 2% higher if not for gains in the dollar. Overall, the market’s reaction was one of comfort that the sharp decline in iPhone sales appears to have been arrested.
Elsewhere, the rest of Apple’s non-iPhone business looks strong.
Services, the business unit Apple is relying on most to pick up the slack from iPhones sales, is also in good health. Revenue growth
Big announcements made by Apple on March around its new Apple TV+ television and film content streaming and Stadia games streaming services plus a credit card in partnership with Goldman Sachs demonstrate the growing importance of services to the company’s future growth prospects. Until recently all the talk had been on what new ‘product’ Apple might come up with to succeed the iPhone. But it now looks as though commentators were looking in the wrong direction and the focus in the background has been on killer new services driving revenue.
A 5% increase in dividend payments was also announced as well as a $75 billion extension to Apple stock buy-back programme, though both were expected.
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