“Apple officially closed its holiday quarter last Saturday (December 27th) and by all accounts, it will be a blockbuster quarter when the company reports its operating results after the market closes on January 27th,” Matt Lew writes for Seeking Alpha. “The company has been the beneficiary of a tremendous tailwind after it announced its revamped iPhone lineup in early September with the larger-screen iPhone 6 and iPhone 6+ [sic].”
“Additionally, AAPL unveiled its long awaited entry into the ‘wearables’ category with Apple Watch and its new payments platform, Apple Pay – a solution that combines NFC and TouchID with a device’s secure enclave,” Lew writes. “I fully expect AAPL to post revenue that exceeds $70 billion, which is mind-boggling when put in perspective. Just five years ago (fiscal 2010), AAPL posted revenue of $65 billion – for the entire year.”
“Additionally, the iPhone is a gateway to AAPL’s sticky ecosystem – think Apple Pay, the App Store, iMessage, iTunes and a host of other services that users have grown accustomed to and more importantly, dependent on,” Lew writes. “The biggest testament to this ecosystem is the massive upgrade cycles that has made the iPhone the most lucrative annuity in the world.”
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Apple to report Q115 earnings on January 27th – January 5, 2015