Apple Earnings Recap: iPhone Sales up, Stock Dips on China Weakness
He argues that the iPhone is on the verge of a supercycle as consumers upgrade their devices to get access to Apple Intelligence features, and Apple will become the first $4 trillion company in 2025. Cook also said Apple Intelligence — a key set of AI features that the company is heavily marketing the iPhone 16 on — was a compelling reason for consumers to upgrade. User adoption of iOS 18.1, which launched in the US on Monday and included the first Apple Intelligence features, was twice the rate of iOS 17.1 a year ago. Overall iPhone demand continued to be strong, with revenue growing 6% year over year to $46.2 billion, beating analyst estimates, though the company continued to face headwinds in China. The company has faced heavy competition from Chinese companies such as Huawei, Oppo, and Xiaomi. Founders Jobs and Wozniak, both college dropouts, founded the company with the idea of changing the way people looked at computers.
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Based on its fiscal 2023 earnings of $6.13 per share, its bottom line could jump to $10.33 per share in five years. Apple has a five-year average forward earnings multiple of why bond prices and yields move in opposite directions 2020 28, which is a small discount to the tech-laden Nasdaq-100 index’s earnings multiple of 29.5. Berkshire Hathaway, led by celebrated investor Warren Buffett, has reduced its Apple stake by 13%. Moreover, analysts and investors are concerned that Apple has been late to capitalize on hot tech trends such as artificial intelligence (AI). Rivals such as Samsung are using AI to boost smartphone sales, while Apple’s latest results indicate that the demand for iPhones is waning. Apple is far from an upstart, but a cash-rich balance sheet, debt it can manage well, and a “wide moat” via its very devoted customer base all make this a stock that likely has a floor.
The newly minted shares were issued to shareholders after norwegian krone japanese yen exchange rate history the market closes on Friday, August 28th 2020. An investor that had 100 shares of stock prior to the split would have 400 shares after the split. Finally, Apple provides AppleCare support services, cloud store services, and a host of other service offerings intended to simplify life. Among them are Apple News (subscription news), Apple TV+ (subscription TV with original content), Apple Card (consumer credit card), and Apple Pay (mobile cashless pay feature).
Analyst reacts: Apple showing ‘resilience’ amid market headwinds.
- Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.
- Apple is still true to Jobs’ vision of “delighting and surprising” consumers, particularly in the middle to upper end of the consumer market.
- Apple generated more than $46 billion in revenue from that segment alone during its latest quarter.
- So a sustained breakout through that upper level will be needed for the stock to avoid disappointing investors in the coming year.
Earnings are expected to grow to $7.40 a share, which is certainly strong, but also not enough to make the stock inexpensive. The stock decline came amid a broader sell-off in mega-cap tech stocks following earnings reports from Microsoft and Meta Platforms, with shares of both tech firms down about 5%. Looking to the holiday quarter, Apple said it expected sales growth in the low to single digits. The company is planning to launch new Apple Intelligence features in December. Cook said he’s been using early versions of the software and it’s “changing my daily life.” Analysts are expecting Apple to sustain double-digit earnings growth of 11% for the next five years.
Apple’s revenue from its largest product line, the iPhone, fell to $46 billion from $51.3 billion in the year-ago period. If Apple is indeed investing significantly in generative AI, it wouldn’t be surprising to see the company equip its next-generation iPhones with AI-focused features. In 2025 and each successive year beyond that, Apple’s biggest challenge is not staying in business or producing massive revenue. However, being great doesn’t always impress Wall Street, especially when your stock is so richly valued. So what Apple will need to do going forward is to justify its valuation to investors.
NASDAQ: AAPLApple Inc Stock Forecast, Predictions & Price Target
Please bear with us as we address this and restore your personalized lists. Like many analysts on Wall Street, Chatterjee is looking for evidence that AI features will drive a bump in iPhone sales. Wedbush analyst Dan Ives isn’t budging from him bullish view on Apple heading into the company’s financial results. Like other analysts, Ng is focused on the impact of AI and all of the software features Apple is set to release in the next few months.
U.K. Competition Watchdog Recommends Investigating Apple, Google Mobile Ecosystems
Goldman Sachs said it sees “upside to consensus revenue and EPS driven by outperformance in iPhone and Services” in a note last week. Cook use bitwala’s calculator for bitcoin and euro thanks Maestri for “shaping Apple as we know it today.” Maestri will continue reporting to Cook in a new role as head of Apple’s information systems and technology and real-estate development. Apple doesn’t issue complete guidance for the following quarter, but Apple’s CFO does provide some color about what the company is expecting for the holiday quarter.