Apple did it again.
The iPhone maker’s stock fell around 1% on Thursday as investors digested their earnings report for the first quarter, for which Apple posted its highest revenue ever at $ 111.4 billion.
Market analysts largely welcomed the quarter and saw it as a sign of further good news from Apple.
Here’s what four of them told CNBC on Thursday:
Dan Ives, Senior Equity Research Analyst for Technology at Wedbush Securities, pointed to Apple’s significantly better-than-expected iPhone sales, which came in at $ 65.6 billion versus an estimated $ 59.8 billion:
“This is a Masters Quarter. That’s an iPhone number that wasn’t even at its best. … We’ve seen double-digit growth in this pandemic. It just shows [that for] The super cycle, the hype was there. The stock is obviously going. Now it’s a reality. I think we could look at 240 [million]-250 million units for the year and I think this is a moment when the bears turn their legs. I think ultimately this really raises the negative thesis about Apple, if there were any. It’s a real cycle. China continues to refuel with both iPhones and services. It’s a replay story that’s still halfway through. “
Peter Rojas, partner at Betaworks Ventures, agreed that the iPhone business would be a significant contributor to Apple’s future growth:
“We looked at the past quarter [as] A generation change in terms of the upgrade cycle with the iPhone 12 and the addition of 5G and, frankly, a lot of people who had been reluctant to upgrade their phones over the past few years were looking for a significant upgrade. Look, the iPhone business is still very, very strong for them, and I think it will continue to fuel growth in the future. The question really is how Apple can continue to use the iPhone and iPad as a launch pad for the service business. You have invested heavily in content and services to tie these new subscription deals to the devices, so for example, when you buy a new iPhone, you get a multi-month subscription to Apple TV. … And that’s how they see it for a very long time, and the fact that the iPhone continues to perform very well is a good foundation for that in my opinion. From my point of view, it’s hard to be severely disappointed.
Guy Adami, Director of Advisor Advocacy at Private Advisor Group, looked for possible pitfalls:
“It’s a ridiculously strong quarter. I mean, if you want the downside of looking for the naysayer, it’s the fact that they smoked revenue. The revenue hit is ridiculous. And the revenue from services was a that Problem is, if people want to look for a problem, now is the product mix. Service revenue is probably 14.5% this quarter. Again, I probably won’t peck, and maybe that’s what the naysayer can look to, but again There’s really nothing that you don’t like here other than the fact that it is now trading probably 32 times next year, which is the deep end of the pool for Apple, but again, a lot of people, including Jerome Powell, have reviews given In this interest rate environment it really doesn’t make any difference. So I’m excited to see how it acts … based on that. “
Loup Ventures’ managing partner Gene Munster shared some highlights of the conference call after winning the company:
“With the iPhone, there wasn’t any kind of shuffle game to get that good number. It was a real number. That was one thing. That’s why the stock is down a few percent. And I just want to quickly highlight a few other important ones.” Things … from the call, and overall the call was very good. One is that the Mac store had limited availability during the quarter. This was the only store that was just in line, but that probably means it has advantages gives street numbers for the March quarter when it comes to Mac. And then I want to give … [Morgan Stanley analyst] Katy Huberty here are some props. She did something that, as an analyst, I always wish I could do. She did wonderfully what was trying to get [Apple CEO] Tim [Cook] to talk about future products, and she disguised her Apple Car question – if Apple is working on a car – as “What do you think of new addressable markets?” And Tim commented that we consider the user experience to be important and bring all of this together segments where we can run both hardware and software and services. Well, I want to make it clear, I am not putting the insert in the ground and saying that Apple will build a car, but I think the leanings are in that direction because the future of a car is exactly that: hardware, software and services . When I put all of this together, I’m surprised the stock isn’t moving higher. I continue to be very pleased with our opinion that this will be a $ 200 share for the next several years. “
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