Apple shares are up 2% in pre-market following an earnings beat that included better-than-expected iPhone sales.
Whereas most analysts predicted Apple’s holiday quarter revenue would hit somewhere in the $88 billion range, the company reported $91.8 billion in a quarter that spanned October 1 through December 31, or 92 days. That means Apple (almost) averaged $1 billion in revenue per day.
Last year, Apple reported revenue of $84.3 billion as iPhone sales declined. The cheaper entry performance and features of iPhone 11 and iPhone 11 Pro helped Apple reverse the trend just a year later, resulting in company record financials for both revenue and profitability. Apple’s install base has topped 1.5 billion devices.
Obviously, the billion-dollar-a-day mark is only made possible in the busy holiday shopping periods; typical quarters are a measly $750 million/day run rate. However, Apple also surprised investors last night with strong guidance. The company says it expects revenue for the January-March quarter between $63-$67 billion. Most analysts had projected March revenues around the $62 billion mark.
In the quarterly earnings call, Tim Cook discussed high demand for Apple Watch and AirPods, possible impacts of the coronavirus, and unsurprisingly avoided questions about the forthcoming 5G iPhone lineup.
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