The Cupertino based company Apple Inc. beat Wall Street’s expectations of the continued growth of the iPhone and the wearables segment. The results are quite marvellous as exactly a year ago, Apple had missed its own targets.
Forecast of Apple’s iPhone sales and the continued growth of its service and wearables segments, shot up the company’s stock by 2 percent during extended trading. However, the service segment’s revenue appears to have slightly fallen compared to the forecast.
The iPhone 11 played a key role in improving the revenue as it turned out to be the most popular Apple product of 2019. Also, the recently launched AirPods Pro at $249, quickly turned into hot selling earphones. In some countries like India, the iPhone XR helped pave the way for a new beginning.
Apple has reported $91.8 billion in terms of revenue for its first fiscal quarter. The Wall Street was looking at the company pulling a revenue of something around $88.4 billion. However, Apple beat Wall Street’s estimations by grabbing an extra 9% of revenue.
The profit per share also increased dramatically – $499 per share. Apple has blown away the estimations set by Wall Street. Apple expects to see the company pull in between $63 billion and $67 billion during its fiscal second quarter. On the other hand, the analysts expect Apple to pull in $62.3 billion during the fiscal second quarter on an average.
“The strength is coming from the iPhone and continued really strong growth in wearables and the App Store,” said Cross Research’s Shannon Cross. “The iPhone was very strong.”
Various leaked reports have already suggested that Apple is working on increasing the units of iPhones to be assembled in 2020. The company is also reportedly working on releasing a low-cost iPhone in March of 2020.