For the longest time, Apple shares were having an extraordinary 2018, becoming the first company in history to reach a market cap of $1 trillion in August before hitting an all-time high of $233 at the start of October.
Cut to the first week of 2019 and, after a galling final quarter, it found itself at $142 for the first time in 18 months. Apple shares now sit at a current trading price of $153.86.
The company’s last update actually had a lot of positives. Earnings rose 41% to $2.91 per share, a decent way ahead of the forecast $2.78, while revenue jumped 20% to an estimate-beating $62.9 billion. That increase in revenue was achieved through a higher average iPhone selling price of $793, compensating for the iPhone sales miss of 46.89 million units versus the 47.5 million expected. Services revenue, meanwhile, was up 27% to $9.98 billion.
Perhaps the most notable element of the report, however, was news that going forwards Apple would not be revealing individual sales numbers for the iPhone, iPad and Mac, a way for the company to take back the narrative after years of investors getting hung up on units shipped.
A surprise letter from Tim Cook in early January then revised the company’s Q1 forecasts, cutting its revenue estimates from $89 billion to $93 billion to a comparatively rubbish $84 billion due to problems in China. Earnings, meanwhile, are expected at $4.16 per share.
What could be more important is its guidance for Q2, given reports it has cut iPhone production for the January to March quarter by 10%.
Apple shares have a consensus rating of ‘Hold’ alongside an average target price of $195.74.
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