Published: Sun, November 04, 2018
Business | By Eloise Houston

Apple (AAPL) Upgraded by BidaskClub to "Buy"

Apple (AAPL) Upgraded by BidaskClub to

The disappointing forecast by the world's most valuable technology company helped send shares down as much as 7 percent, taking roughly $70 billion off Apple's market value and forcing that value below $1 trillion. We recommend prospective investors wait for a more attractive margin of safety for this narrow-moat behemoth. The results were good, with Apple raking in record revenue - up 18 per cent quarter-on-quarter, and 20 per cent year-on-year. Apple's services, which includes iTunes, Apple Music, iCloud, Apple Pay and Apple Care, has been growing for years and could become the company's main revenue generator as iPhone sales plateau.

Investors have never been able to check on the progress of some devices, like the Apple Watch, and some fear that any forthcoming slump in the key area of iPhone sales would be hard to spot.

Apple sold 9.7 million units of iPad, bringing in US$4.09 billion as revenue.

Customers look at new Apple watches, including the Series 4, at an Apple store in NY. Apple's resilience was all the more impressive considering the company is exposed to China at a time of escalating trade tension with the U.S.

"We were especially pleased with Mac momentum in emerging markets with strong growth in Latin America, in India, the Middle East and Africa, and Central and Eastern Europe", Apple's Chief Financial Officer Luca Maestri said. Apple fetched an average of $793 per iPhone in the quarter, up 28 percent from the same time previous year. As for other products, iPad sales were down by about 6% year over year while Mac sales were down by 2%.

Apple has long reported unit sales and revenue numbers for its major devices, such as the signature iPhone.

Back to the Q4 2018 results, and Apple shared, as is usual, a breakdown of device and service sales units/revenue. This year too, Apple revealed just the number of iPhones sold and bundled every other hardware including Apple, Watch, MacBook and Mac Mini under 'Other Products'.

For the firm's full 2018 financial year, profits increased 23% to $59.5bn, as revenue rose 16% to $265.5bn.

Apple shares were selling off in early trading Friday as Wall Street reacted to the tech giant's weaker-than-expected holiday sales guidance and an announcement that it would no longer report the number of iPhone it sold on its quarterly earnings reports.

The company also said it would stop publishing the volumes of phones, tablets and laptops sold in the period. While Apple missed out on talking about India last quarter, CEO Tim Cook had a lot to say about the company's India plans.

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