Apple Inc. (NASDAQ:AAPL) released its earnings figures for the three months through September on Wednesday afternoon, and the firm did just enough to keep its head above water. Right after the report was released shares in the Cupertino firm jumped 3 percent in after-hours trading. That gain faded quickly after the firm’s earnings call, however.
Before the market is set to open on Wednesday morning shares in Apple are selling for $116.55. That’s a 1.75 percent increase over Tuesday’s close. It’s clear, however, that Apple is only treading water with Wall Street right now. There’s still huge worries about the firm’s future, and traders as a whole aren’t willing to bet on the iPhone 6S.
Judging the iPhone 6S
Apple Inc. (NASDAQ:AAPL) iPhone sales in the third quarter were just about in line with what Wall Street was looking for at 48 million, but the key number heading into the release of the report was forward guidance rather than the third quarter shipments.
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Apple guided for total sales of around $75B in the holiday quarter. That implies that the firm will, just about, beat the sales record of the iPhone 6 in the current quarter. In the three months through December 2014 Apple managed to sell 74.5 million units of the smartphone.
Dan Ives, of FBR Capital, reckons that 75 million shipments in the fourth quarter will be needed in order to keep Wall Street confident in the future of Apple. Apple’s guidance means that the firm may very well hit that number, but nothing, even the $14B that Apple sent to shareholders during the quarter, seems likely to impress Wall Street right now.
Waiting for Apple to “Think Different”
Wall Street is almost entirely in agreement on one thing: Almost all of the growth at Apple Inc. (NASDAQ:AAPL) comes from the iPhone, and that growth can’t go on forever.
The Apple Watch may have sold as many as 3.5M units during the three months through September. Tim Cook said the device sold more than it had in the second quarter, but offered little specific info on sales of the device. Apple hides unit sales of the Apple Watch in its reports.
On top of that sales of the iPad sunk yet again in the fourth quarter, while sales of services, like iTunes and Apple Music, went up, they’re still a long way off relieving the pressure from Apple’s risk of iPhone loss.
Apple is still doing great, and the firm’s growth in the fourth quarter of fiscal 2015 was truly massive. The world still seems worried about shadowy risks ahead for Tim Cook’s concern, however, and that’s going to dominate share trading over the coming months, and perhaps beyond.
Apple sales have seen huge growth, and the firm has returned billions to its investors. Despite that shares are trading for about the same value they were last January. Traders seem to be waiting for all sorts of risk to be removed from the firm’s shares before buying in, but Wall Street research houses, and the firm’s leaders, appear very happy with performance.