We recently told you that Apple shares were undervalued and were set to rocket. Now following its third quarter report the Apple stock price leapt to over $400 for the first time, and we are looking at more Apple stock news and insight.
Bloomberg are reporting that this was achieved after record sales of its iPhone and iPad and Q3 estimates were blown away. Net income during that time more than doubled to $7.31 billion or $7.79 a share. This was up from $3.25 billion and $3.51 a share, and sales went up by 82 percent to $28.6 billion, with analysts predicted revenue of $25billion and $5.87 a share.
iPhone sales were pushed up by international sales and particularly in China where revenue rose to $3.8 billion. The company has since improved supplies of the iPad 2 and has seen sales of the device rocket, with the device being the second biggest revenue source behind the iPhone.
The company’s shares leapt 7.5 percent to $405 after the results were announced, with the stock up by seventeen percent so far this year. It had closed at a new record high of $376.85 in regular Nasdaq Stock Market trading. Some investors were previously concerned about sales after there was no new iPhone in June, and Steve Jobs being on medical leave.
One Apple investor from Thrivent Asset Management described Apple as a “juggernaut” as the company continues to grow. Its move into China and other growing economies offset slower growth in the US. Sales in China, Taiwan and Hong Kong have reached $8.8 billion in the first three quarters of the financial year according to Apple.
Chief Operating Officer Tim Cook who is looking after the day-to-day running of things while Jobs is away said that “China was very key to our results”. He added that the company was “just scratching the surface right now.”
The company managed to sell 20.3 million iPhones and 9.3 million iPads during the period, while Mac computer sales were 3.95 million. Apple said during the fourth quarter profit would be around $5.50 per share from sales of $25 billion. But analysts believe it will be around $6.41 per share from sales of $27.7 billion. Apple has beaten earning projections for around 29 straight quarters, and normally gives low forecasts.
In the current economic climate these figures are pretty impressive whether you are an Apple fan or not. Considering that it’s been over a year since the last iPhone was released adds more weight to the success. With rumors that its new lineup of MacBook Airs are set to give more value to consumers, sales should continue to rocket.
Are you surprised by Apple’s huge sales figures?
Also See: Apple UK Store skips Friday sales