NEW YORK, Nov 3 ― Apple Inc took a step closer to becoming a trillion dollar company after the tech giant reported a blowout third quarter yesterday and shrugged off concerns related to the US$999 (RM4,227) iPhone X.
Its shares rose almost 4 per cent in premarket trading today, on track to add nearly US$30 billion to its market capitalisation. The company is currently valued at US$868 billion.
The Cupertino, California-based company also forecast a strong holiday quarter ahead, which will include the much-awaited iPhone X that started selling on November 3.
“We see iPhone X unlocking pent-up iPhone upgrades, especially in China, driving more than 20 per cent iPhone unit growth and a revenue and earnings beat in 2018,” analyst Katy Huberty on Morgan Stanley said.
Long lines had already started forming outside Apple stores in Asia as fans flocked to buy the new iPhone.
At least five brokerages raised their price targets on the stock, with Canaccord Genuity making the most bullish move by raising its price target by US$15 to US$195. The median price target on the stock is US$180.
With Canaccord's move, five Wall Street analysts now have target prices for Apple that put its market value above US$1 trillion. Drexel Hamilton's Brian White is still the most bullish among Apple analysts tracked by Thomson Reuters with a target price of US$208.
Apple's third-quarter results underscored the company's ability to drive growth not just on iPhones, but across its range of products, analysts said.
The company's suite now includes five different iPhone models, the iPad, the Mac and the Apple Watch as well as its fast-growing services.
Apple said it sold 46.7 million iPhones in the fourth quarter ended September 30, above analysts' estimates of 46.4 million, according to financial data and analytics firm FactSet. Mac and Ipad sales too were above the estimates of most analysts.
“Apple's first-mover advantage and “easy growth” from new smartphone adopters is over, but the company appears likely to retain its existing premium customer base,” analysts at Morningstar said. ― Reuters
