Apple's Tasty Results Satiated Investors

Apple's Tasty Results Satiated Investors

almost 4 years ago2 mins

Mentioned in story

Smell that? That’s the sweet smell of Apple cooking up better-than-expected quarterly results late on Thursday – results that were very much to investors’ liking 🥧

What does this mean?

The last three months have been something of a rollercoaster for the US’s second-biggest public company. Apple warned investors back in February that its revenue would fall short of expectations after China responded to coronavirus with factory shutdowns, and as the pandemic spread across the globe, the tech giant shuttered its stores and saw demand for its products drop off rapidly. By April, however, its suppliers had already become more optimistic about the rest of the year 📆

Analysts could’ve used some of that glass-half-full chutzpah: Apple’s revenue last quarter surprised them by coming in higher than a year ago, despite 7% fewer iPhone sales. What’s more, the company’s services revenue – from its music, magazine, and video streaming subscriptions – rose by a higher-than-expected 17%, likely thanks to a (literally) captive audience 🔒 And partly because that segment of its business is more profitable than its hardware segments, Apple’s profit beat forecasts too.

Daily Brief Image

Why should I care?

With the launch of its new iPhones delayed, there’s still a lot Apple doesn’t know about how its year will pan out. So even though things picked up in April, the company – unusually – didn’t offer a forecast for this quarter. It did, on the other hand, announce a $50 billion increase in its share buyback program, along with a higher-than-expected dividend 💰 That lucrative boost might keep investors who are faced with the unknown from selling their shares – especially since several other big companies have recently paused their payouts.

Daily Brief Image

Apple reportedly plans to start selling Macbooks using its own microchips from next year, rather than existing supplier Intel's. That lost income is bad news for Intel, but it should boost Apple’s profit from computer sales – assuming prices stay stable or increase – as there’ll be fewer middle-men taking a cut of Apple’s revenues.

Daily Brief Image
Finimize

BECOME A SMARTER INVESTOR

All the daily investing news and insights you need in one subscription.

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

Finimize
© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG