Shares of Apple were up more than 5 percent in Friday morning trading, the day after Apple reported all-time record fiscal fourth quarter earnings that showed 8% annual sales growth.
“Apple looks like a “relatively safe port in the storm,” Credit Suisse analyst Shannon Cross wrote in a note on Friday.
But investors fled from other Big Tech stocks this week. Microsoft and Alphabet had their worst days of the year on Wednesday. Meta had its second-worst day on Thursday, plunging 24% to prices it hasn’t traded at since 2016. And Amazon was down about 10% Frida morning after reporting earnings Thursday.
But Apple now looks a lot more stable than its peers, especially as fears of a recession start weighing on ad sales and potential holiday spending. It’s largely because Apple relies on hardware and services that people are still buying.
And Apple managed this while the larger phone and PC industry saw big declines. Worldwide smartphone shipments declined 9% during the third quarter, while Apple’s shipments increased by 8%, despite its higher-priced devices, according to an estimate from research firm Canalys this week.
“Demand for premium devices remains intact,” wrote Cowen’s Krish Sankar in a note on Friday.
In short, Apple’s business remains strong, and demand for its products remains high around the world, even in emerging markets, bucking downward trends for global smartphone sales from other brands.
“Following Apple’s F4Q22 results, it remains our top pick and, we believe, will likely remain a relative safe haven for many as the macroenvironment remains highly uncertain and choppy,” Cross, of Credit Suisse, said. Cross added that Apple’s results showed the company continues to grow in every region it sells in, despite recent price increases and weakening consumer sentiment.
Apple’s quasi-guidance also was largely in-line with expectations…
MacDailyNews Take: As we wrote prior to Apple’s earnings report:
Apple iPhone customers are the most recession-proof smartphone buyers. — MacDailyNews, September 7, 2022
The same goes for Mac, iPad, Apple Watch, and Apple Services customers in personal computers, tablet computers, smartwatches, and subscriptions, respectively. – MacDailyNews, October 13, 2022
The most inflation- and recession-resistant big tech company is Apple, thanks to its superior customer demographics. – MacDailyNews, October 27, 2022
When your money becomes a greater concern, you want to spend it wisely. In China and everywhere, if it’s not an iPhone, it’s not an iPhone. Further, if it’s not an iPhone Pro, it’s not an iPhone Pro. – MacDailyNews, October 27, 2022
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Storm? Just yesterday Joe assured us all is well.
A ship as big and strong as the USA (and other stable democracies) are more than capable of weathering economic storms. Economic storms happen, have always happened around the world regardless of political regime or economic model. It’s all part of the real world we live in. Your attempted political swipe doesn’t change that fact.
Be glad that the USA is faring dramatically better than the UK, which slit its own throat with isolationist policies, blew up its balance sheet with ill-advised trickledown, and is now headed by a Goldman Sachs alum who … well you know the rest. Privatize gains, socialize losses.
MDN, is there a reason you censor every other post I write?
Your posts are not being censored.
Posts with 4 or more links are automatically placed in the moderation queue as a common characteristic of comment spam is a large number of hyperlinks.
We just suck at weeding through the moderation queue. Sorry, we’ll try to do better.
To avoid this auto moderation issue, use 3 links or less per comment.
That is ridiculous. You’re not moderating content, you’re arbitrarily cutting off posts using elementary filters. Not very sophisticated especially for a site claiming to enjoy tech.
Yay for the APPL surge, but my APPL holdings are still worth less than when Trump was POTUS.
Rest assured that Joe and the Dems have everything under control
The SP high during Biden’s tenure was in the 180s. Trump’s was never that high!