Apple Inc's (NASDAQ:AAPL, ETR:APC) quarterlies dropped after hours and there’s a lot for UK investors to chew on, especially those with exposure through ISAa and tech-heavy funds.
First up, Wedbush’s analysts call the quarter a “statement moment” for Apple.
The headline numbers easily cleared Wall Street’s expectations: revenue up 10% to $94 billion and earnings per share of $1.57. iPhone sales jumped 13%, and that’s the fastest growth Apple’s posted in nearly three years.
It’s a sign that the latest iPhones are striking a chord, not just with new customers but with plenty of existing users upgrading.
Services revenue, a key pillar of Apple’s future, also grew a healthy 13%. That’s music to investors’ ears, given the recurring, high-margin nature of this part of the business.
Even the Mac division managed to surprise, posting its strongest year-on-year jump since the pandemic demand boom.
There were a couple of weak spots: iPad sales and wearables (think Apple Watch and AirPods) both slipped. But Wedbush notes that the mix shift towards high-end devices, and particularly the “sticky” ecosystem of services and subscriptions, helps to offset these wobbles.
Looking ahead, the broker sees more positives than negatives. Apple flagged mid- to high-single-digit revenue growth in the current quarter, driven by steady demand and resilience in China, which bounced back after a couple of shaky periods.
The upcoming launch of new AI features across the product line is expected to give Apple’s ecosystem another shot in the arm. Wedbush is also upbeat about Apple’s ongoing investment in artificial intelligence, seeing this as a “multi-year growth tailwind.”
On the cash front, Apple’s war chest remains enormous at $133 billion, giving the company huge flexibility for dividends, buybacks, and potentially M&A if the right target comes along.
The shares rose 1.5% after hours.