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Apple at All-Time High: Poised for More Growth as Anticipation for Next iPhone Builds
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In anticipation of its 10th anniversary iPhone, due out this spring, Apple Inc. (AAPL - Free Report) looks poised to build on its already stellar 2017. The tech giant closed Monday at an all-time high of $133.31 per share in after-hours trading, jumping 0.9%, and it is up to $134.19 after early Tuesday morning trading. Apple's stock is up 15% since the beginning of 2017.
The company posted all-time high quarterly revenue of $78.4 billion in its first fiscal quarter of 2017, which ended December 31, 2016. Apple has once again reached an elusive $700 billion market value, after becoming the first publicly traded U.S. company to do so in February 2015. The $700 billion value places the company firmly at the top of the U.S. food chain, nearly $120 billion above Google (GOOGL - Free Report) , now Alphabet.
“We’re thrilled to report that our holiday quarter results generated Apple’s highest quarterly revenue ever, and broke multiple records along the way,” Apple CEO Tim Cook said in a press release.
“We sold more iPhones than ever before and set all-time revenue records for iPhone, Services, Mac and Apple Watch. Revenue from Services grew strongly over last year, led by record customer activity on the App Store, and we are very excited about the products in our pipeline.”
The company’s flagship product, the iPhone, was born on June 29, 2007. The transformative smartphone helped catapult Apple to where it is today.
Now, nearly a decade later, details of the iPhone 8, or the iPhone X, a rumored name, might just pack enough new features to encourage a huge uptick in purchases. But more importantly, it could signal that Apple is once again making massive jumps in innovation, which the last few iPhones lacked.
The normally measured Cook spoke recently about groundbreaking new plans, which could include augmented reality.
Leaks about the upcoming iPhone have started to come out, and they are bold. Some of the “supply chain” leaks suggest Apple’s new iPhone “will change this industry deeply.” Speculation suggeststhe iPhone 8 could be made almost entirely of glass, charge wirelessly and come in three different sizes. It could also have an OLED screen, which would help boost battery life dramatically.
Cook announced last month Apple’s plan to double the company’s $24.35 billion services business by 2021. The CEO also suggested upcoming tax reforms would allow the company to bring home cash held overseas to help bolster mergers and acquisitions.
International sales accounted for 64% of Apple’s first quarter revenue. This is massively important as the company tries to hold ground in highly competitive Asian markets, especially China, the world’s largest smartphone market. Part of this growth is due to increased app purchases and streaming music subscriptions.
However, iPad sales have leveled off, and the Apple Watch has not yet made the splash the company has hoped for. But the Apple Watch still claimed 63% of the still new smartwatch marketin the fourth quarter. Its second-generation waterproof model could be bigger than the first.
The company’s Beats Electronics brand, which it purchased for $3 billion in 2014, holds a lot of cachet in popular culture, including professional sports and music. And their new Airpod earbuds have potential to catch on quickly.
An estimated 85% to 90% of iPhone users will buy another iPhone, according to UBS. There are currently over 600 million iPhonesbeing used worldwide, many of which are models 6 or lower. This means a lot of people could upgrade this year, especially with the introduction of iPhone X, its most game-changing phone in years.
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Apple at All-Time High: Poised for More Growth as Anticipation for Next iPhone Builds
In anticipation of its 10th anniversary iPhone, due out this spring, Apple Inc. (AAPL - Free Report) looks poised to build on its already stellar 2017. The tech giant closed Monday at an all-time high of $133.31 per share in after-hours trading, jumping 0.9%, and it is up to $134.19 after early Tuesday morning trading. Apple's stock is up 15% since the beginning of 2017.
The company posted all-time high quarterly revenue of $78.4 billion in its first fiscal quarter of 2017, which ended December 31, 2016. Apple has once again reached an elusive $700 billion market value, after becoming the first publicly traded U.S. company to do so in February 2015. The $700 billion value places the company firmly at the top of the U.S. food chain, nearly $120 billion above Google (GOOGL - Free Report) , now Alphabet.
“We’re thrilled to report that our holiday quarter results generated Apple’s highest quarterly revenue ever, and broke multiple records along the way,” Apple CEO Tim Cook said in a press release.
“We sold more iPhones than ever before and set all-time revenue records for iPhone, Services, Mac and Apple Watch. Revenue from Services grew strongly over last year, led by record customer activity on the App Store, and we are very excited about the products in our pipeline.”
The company’s flagship product, the iPhone, was born on June 29, 2007. The transformative smartphone helped catapult Apple to where it is today.
Now, nearly a decade later, details of the iPhone 8, or the iPhone X, a rumored name, might just pack enough new features to encourage a huge uptick in purchases. But more importantly, it could signal that Apple is once again making massive jumps in innovation, which the last few iPhones lacked.
The normally measured Cook spoke recently about groundbreaking new plans, which could include augmented reality.
Leaks about the upcoming iPhone have started to come out, and they are bold. Some of the “supply chain” leaks suggest Apple’s new iPhone “will change this industry deeply.” Speculation suggeststhe iPhone 8 could be made almost entirely of glass, charge wirelessly and come in three different sizes. It could also have an OLED screen, which would help boost battery life dramatically.
Cook announced last month Apple’s plan to double the company’s $24.35 billion services business by 2021. The CEO also suggested upcoming tax reforms would allow the company to bring home cash held overseas to help bolster mergers and acquisitions.
International sales accounted for 64% of Apple’s first quarter revenue. This is massively important as the company tries to hold ground in highly competitive Asian markets, especially China, the world’s largest smartphone market. Part of this growth is due to increased app purchases and streaming music subscriptions.
Warren Buffett’s Berkshire Hathaway Inc., (BRK.A - Free Report) has poured millions of dollars into Apple over the last year, which brings its stake to nearly $1.5 billion. The “Wizard of Omaha” backing a company is rarely a bad sign.
However, iPad sales have leveled off, and the Apple Watch has not yet made the splash the company has hoped for. But the Apple Watch still claimed 63% of the still new smartwatch marketin the fourth quarter. Its second-generation waterproof model could be bigger than the first.
And still, Apple’s iOS products are on track to reach nearly a trillion dollars in sales.
The company’s Beats Electronics brand, which it purchased for $3 billion in 2014, holds a lot of cachet in popular culture, including professional sports and music. And their new Airpod earbuds have potential to catch on quickly.
An estimated 85% to 90% of iPhone users will buy another iPhone, according to UBS. There are currently over 600 million iPhonesbeing used worldwide, many of which are models 6 or lower. This means a lot of people could upgrade this year, especially with the introduction of iPhone X, its most game-changing phone in years.
Which Stocks are Zacks Experts Talking About?
Stocks in today's headlines may be tempting buys, but how would you like to peek behind the curtain to see all the best stocks Zacks' team of experts are recommending? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF and options moves...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). Click here for all Zacks trades >>