This morning we saw Apple’s 3rd quarter result meet the Streets estimates easing fears that supply chain disruption and a questionable global economy would weigh on earnings. Revenue rose 2% to a whopping $US83bn while earnings equated to $1.20 per share (v $1.16 exp). The companies staples iPhone & iPad sales beat estimates while the secondary Macs and wearables fell short of estimates – here we are again the best offerings shine but elsewhere it can be tough even for Apple! So far so good for Apple in a smartphone market that’s been struggling of late e.g. on Wednesday chip maker Qualcomm Inc said that the consumer’s appetite for devices had slowed, again when things are tough a new phone can wait until next year and we should take nothing for granted here if we do enter a deep recession.
One area of the business that we did particularly like was the +12% growth in digital services such as iCloud, AppleCare & Apple TV+ taking revenue to $US12.6bn.
- The stock has initially popped over 3% following its latest report with relief of no bad news the underlying feel.
- MM remains a fan of Apple but doesn’t see a reason to “chase strength” in today’s environment i.e. it’s one to accumulate into weakness.
MM is long and bullish Apple Inc
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