Apple proved it’s not yet down for the count, reporting quarterly earnings and iPhone sales on Tuesday that topped Wall Street’s expectations.
Apple’s shares have fallen about 20% so far this year as investors question whether the tech giant, long known for its innovation, can come up with The Next Big Thing to keep it growing.
Worries have also mounted that demand for high-end smartphones like the iPhone — which makes up more than half of Apple’s overall sales — is dwindling.
Apple said it sold 31.2 million iPhones during the quarter, up 20% and far exceeding forecasts for about 26.1 million.
While its quarterly earnings fell about 22% from last year and iPad sales fell, the results calmed worries growth has stalled.
“That’s still the most significant product for the company, so that’s a very good sign,” Tom Forte, an analyst at Telsey Advisory Group, told the Daily News.
He added, though, that the company still needs to show it can stay on the cutting edge with its new products.
The company’s stock jumped 5% in after-hours trading after closing slightly lower on Tuesday at $418.99.
The tech giant reported earnings of $7.47 per share on sales of $35.3 billion. Analysts had been expecting a more modest $7.30 per share on sales of $35 billion.
Its iPad sales fell 14% from the year-ago period to 14.6 million, and its sales forecast for the current quarter came in below many analysts’ estimates.
With News Wire Services