“After an ugly 2018, Apple Inc. is back in vogue with investors who are looking past underwhelming iPhone sales and embracing the company’s vision of a digital services future,” Jeran Wittenstein reports for Bloomberg News. “Apple’s 26 percent rally this year leads all but Facebook Inc. among the largest U.S. technology companies. The gains added more than $200 billion to the market value of the Cupertino, California-based company.”
“The rebound will be put to the test when Apple reports fiscal second-quarter results on April 30. Analysts expect revenue to fall 6 percent, the worst year-over-year decline since 2016, according to the average estimate compiled by Bloomberg,” Wittenstein reports. “Earnings per share is forecast to drop 13 percent.”
“Amid falling iPhone sales Apple has emphasized newer digital services with higher growth rates and potentially fatter profit margins. Last month, the company unveiled four new offerings including a video-streaming service and a mobile gaming subscription.,” Wittenstein reports. “Apple shares have also been buoyed this year by broader factors. The U.S. Federal Reserve stopped raising interest rates in late January, reviving investor appetite for technology stocks. There’s also been cautious optimism about an end to the tariff fracas between the U.S. and China.”
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MacDailyNews Take: As per “underwhelming iPhone sales:”
Apple sold 217.72 million iPhones in 2018, up from 216.76 million in 2017, and up from 211.88 million in 2016.
If that’s “unwhelming,” please underwhelm us some more, Apple!