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Open Books: Apple Stock Down: Apple Can Beat Expectations | news

After an impressive run in the corona pandemic, Apple is bracing for a major setback in the current quarter. The iPhone group expects sales to be four to eight billion dollars lower, mainly due to the crown lockout in Shanghai. “We are not immune to such challenges,” said CEO Tim Cook. The difficulties would concern most of the product categories.

The disruption of operations in Russia in response to the Russian war of aggression in Ukraine will also slow sales growth, CFO Luca Maestri said. On the other hand, Cook sees signs of optimism about the crown situation around Shanghai. At the same time, he said it was difficult to predict how much of the business lost in the current quarter could later be recovered.

In the last quarter, Apple was able to successfully combat global problems in the electronics industry and increased sales by 9% year-on-year to $ 97.3 billion. The end result was a $ 25 billion in-house profit, nearly 6% more than the previous year. It was Apple’s third-highest quarterly profit. The group had only hit a record $ 34.6 billion in the previous quarter.

Growth was particularly strong in the services area, where the business is bundled with storage services, the app platform, but also music and video streaming. Division sales grew a whopping 17% to $ 19.8 billion.

With Apple’s most important product, the iPhone, sales increased 5.4 percent to nearly $ 50.6 billion. According to the calculations of the market research firm Canalys, Apple was the only major smartphone maker to increase sales in the last quarter. According to Canalys, Apple sold 56.5 million devices, up 7.8% from the same quarter last year. Market leader Samsung, on the other hand, dropped 3.6% to 73.7 million mobile phones. Many of the major smartphone vendors no longer provide sales figures on their own.

Mac computers also made Apple happy, with sales up 14.6% to a whopping $ 10.4 billion. In contrast, the global PC market shrank by about 5% in the quarter, according to calculations by analyst firm IDC.

The electronics industry as a whole is grappling with chip bottlenecks and other supply chain problems. At Apple, the iPad tablet already suffered in the last quarter, with sales down 2% to $ 7.65 billion. In the division with the Airpods earphones and the Apple Watch computer watch, however, there was a twelve percent increase in sales to 8.8 billion dollars.

In its fiscal second quarter, which ended in late March, Apple far exceeded analysts’ expectations in terms of business and group sales of iPhones and Macs, among other things. The share buyback program is now being expanded by an additional $ 90 billion. The stock began pre-market trading on Friday down 1.75%. According to data from the last quarter, it had initially experienced price increases.

An analyst wanted to know from Cook if Apple was considering fundamental changes to its supplier model following the recent crown problems, such as stocking up on bigger chips. Apple’s CEO said the company’s supply chain is global and it is not possible to accumulate semiconductors in today’s world. But the group reacts: “We learn something every day and make adjustments.” He also hopes that the high costs of sea and air transport will decrease again.

JPMorgan Lowers Apple Goal to $ 200 – “Overweight”

US bank JPMorgan lowered its target price for Apple from $ 205 to $ 200 according to its financial year second quarter data and left the rating at “Overweight”. In a study of the iPhone maker available Friday, analyst Samik Chatterjee praised the outstanding track record illustrating the company’s positioning as a safe haven. However, the annual targets have made it clear that Apple is not immune to challenges like the crown lockdown in Shanghai.

Apple’s stock price turned negative in after-hour trading after initial gains. Official NASDAQ trading on Friday eventually fell 3.66% to $ 157.65.

Editorial financeen.net / CUPERTINO (dpa-AFX) / NEW YORK (dpa-AFX Broker)

/ so / DP / mis

CUPERTINO (dpa-AFX)

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