SAN FRANCISCO – Apple Inc.'s new iPhones will help the technology giant return to growth in the key holiday period, supported by a growing collection of other products and services. The company projected fiscal first-quarter revenue that beat analysts' estimates, signaling solid demand for iPhone 11 models, new services like Apple TV and wearables such as upgraded AirPods and the Apple Watch. The shares rose, but gains were limited. Optimism was tempered by falling revenue in many markets outside the Americas, a weaker performance from the Mac computer division and a surge in the stock ahead of the results Wednesday. Fiscal first-quarter sales will be $85.5 billion to $89.5 billion, the Cupertino, California-based company said in a statement.
Apple revealed its profit have jumped more than 30 percent to $11.5 billion in the recently ended quarter, beating market expectations. The news boosted shares in the tech giant in after-hours trading, putting it ever closer to a history-making, trillion-dollar market value. The tech giant beat sales estimates in part by selling fewer but pricier iPhones than analysts expected. Apple sold 41.3 million units, below expectations of 41.8 million units, while hitting an average selling price of $724 (£551.7), Shares of Apple surged 3.9 percent to $197.81 in after-hours trading on the back of its powerhouse earnings.
Apple's shares have suffered its longest losing streak since July 1998. Shares of the iPhone-maker posted fell 0.1% Monday for an eighth consecutive session of losses, following the company's announcement last week that iPhone sales fell for the first time ever in a quarter and revenue fell for the first time since 2003. However, Apple CEO Tim Cook told CNBC's Jim Cramer'I couldn't disagree more' when asked if the tech giant's best days were now behind it, saying claims the firm is dead were'a huge overreaction'. Apple CEO Tim Cook told CNBC's Jim Cramer'I couldn't disagree more' when asked if the tech giant's best days were now behind it. The latest share performance is Apple's longest losing streak since July 1998, according to WSJ Market Data Group.
Apple has revealed record revenue and profits - but admitted it could miss its sales targets for the lucrative holiday season. However, the record-setting quarterly results were overshadowed by Apple warning that sales for the crucial holiday quarter could miss Wall Street expectations. CEO Tim Cook blamed the downcast guidance on weakness in emerging markets like India, Russia and Brazil, as well as foreign exchange headwinds. Importantly, Cook expressed concerns over whether the iPhone maker can keep up with demand for new products. The results sent Apple shares down more than 7 percent to $206.46 in after-hours trading on Thursday.
For the first time in the iPhone's history, Apple has revealed a year-on-year drop in sales of its handset - and its first drop in overall revenue since 2003. The firm's quarterly results were below Wall Street targets, and it forecast another disappointing quarter - which saw Apple's shares down more than 5 percent in early after-hours trading. Apple says the slump is sales was caused by'macroeconomic headwinds' and the iPhone 6 being'an anomaly' as it offered an entirely new size handset. A cloud over Apple: After five successive quarters where Apple has reported record revenues, the first three months of 2016 are likely to be the worst in 13 years. Apple sold more than 51.2 million iPhones in the first three months of 2016 - while racking up 10.5 billion in quarterly profit.