After a couple of quarters of bad news, Apple is looking like they have some good news for their shareholders vis-à-vis growth.
When earnings results are announced this week, reports indicate that iPhone 7 will have blown up, thus reversing three straight quarters of decline. Those down quarters have had many analysts wondering if Apple is past its best days and if they have come to rely too much on their flagship product.
But with the new figures, the widely expected announcement is impressive — 78 million iPhones sold in the three months from December, a pick-up of 3 million phones from the same time last year. Revenues have also picked up some to $77.9 billion, though profitability may take something of a hit, since Apple’s new model has somewhat higher production costs.
Also of interest to Apple watchers this week will be hard figures on the Apple Watch — likely there will be none, as Apple almost never releases them. However, Tim Cook did note that there was a “record week” after the release of the newest edition, so perhaps there will be numbers worth sharing after all. Also of pressing interest to analysts will be Apple’s services division, as it has been the company’s most consistent profit center for the last year. Services is the home of Apple music, app sales and Apple Pay.
Apple shares are currently trading at their highest level in over a year in advance of the big earnings release.