“Apple Inc. is poised to record its first profit gain in more than a year after shoppers who shunned clothes and purses during the holidays shelled out for iPads and iPhones,” Adam Satariano reports for Bloomberg.
“The world’s most valuable company is projected to report 5 percent sales growth and a 2 percent profit increase today for its fiscal first quarter, typically the period when Apple generates its biggest chunk of revenue,” Satariano reports. “The company likely benefited from the latest versions of the iPhone and iPad, which were released late last year, helping Apple eke out gains during a dismal period for retailers as varied as Best Buy Co. to Victoria’s Secret owner L Brands Inc. That may lead to a profit upswing over the next quarters, according to data compiled by Bloomberg, amid new iPhone sales in China.”
“Revenue gains are set to be driven by sales of the iPhone 5s and 5c and the iPad Air and new iPad mini, which Apple refreshed late last year,” Satariano reports. “Morgan Stanley’s Katy Huberty estimates Apple sold 54 million to 55 million iPhones and as many as 26 million iPads over the quarter, which are both records. Huberty wrote in a research note on Jan. 21 that Apple is at the ‘beginning of a new cycle of growth and innovation.’ She has the equivalent of a buy rating on the stock. ‘Apple products were a holiday gift of choice,’ said Brian Marshall, an analyst at ISI Group, who has a buy rating on the stock.”
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