Apple Surges As iPhone Sales Rebound

By Glenn Dyer | More Articles by Glenn Dyer

An example of Apple giving those investors what they want, and saving the share price?

Ever since the 4th quarter report and weak forecast for the three months to March, Apple has been queried about whether it is really going Ex-iPhone with the company’s services business.

Apple reported a fall in iPhone sales in the December quarter which triggered the sell-off.

But Apple shares have rallied to be up more than 28% before Tuesday’s trading when the shares fell 1.9%.

Apple shares surged in after-hours trading to be up more than 5% and moving back towards a valuation of $US1 trillion.

The reason? The growing belief that the company’s key iPhone product was not down and out.

So it wasn’t such a surprise to see Apple indicate in its March quarter release and briefing from CEO, Tim Cook, that it is likely to return to revenue growth in the current quarter, pointing to a quicker rebound from the recent slump in iPhone sales than had been expected, sending its shares up by 5% in early after-hours trading.

Apple said revenue from iPhones totaled $US31.05 billion. While that was lower than the $US38.03 billion in the year-ago period, it was higher than the $US30.5 billion Wall Street had forecast.

The smartphone giant reported fiscal second-quarter net income of $US11.6 billion, down from $13.8 billion. Revenue fell to $US58 billion from $US61.1 billion. Analysts had forecast revenue of $US57.5 billion.

Apple issued revenue guidance of $US52.5 billion to $54.5 billion for the June quarter, the third of its financial year. At the midpoint of the range that is $US1.5 billion above most analysts’ estimates and points to a slight increase from last year’s $53.3 billion.

The performance by Apple was in contrast to Google parent Alphabet, which reported disappointing first-quarter earnings on Monday. Alphabet shares had one of their worst days in their history, the shares losing $US99.10 per share, or nearly 8%, to end the day at $US1,188.48.

About $US75 billion in market value vanished in the sell-off and late on Tuesday Alphabet revealed that its former chairman and CEO, Eric Schmidt was stepping down but would remain a consultant to the company.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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