Apple Inc.’s (NASDAQ:AAPL) Christmas sales forecast has beat analysts’ estimates, sending the iPhone maker’s stock price higher.
After markets closed Wednesday, Apple announced fiscal first-quarter revenue that beat analysts’ estimates, signaling solid demand for its new iPhone 11, as well as new services such as Apple TV+ and upgraded AirPods and Apple Watches.
The company’s shares rose in after hours trading Wednesday to a high of $249.23 before falling back to $243.26. Optimism was dampened by Apple reporting that its revenue in many markets outside America had fallen due to weak performance from the Mac computer division. Apple said it generated $7 billion U.S. in revenue from the Mac segment. That was down 5% and missed Wall Street forecasts.
Fiscal first-quarter sales will be $85.5 billion U.S. to $89.5 billion U.S., the company said in a written statement. Analysts were looking for $86.5 billion U.S., according to data compiled by Bloomberg.
Chief Executive Officer Tim Cook said on a conference call with analysts Wednesday: “We’re very optimistic about what the holiday quarter has in store…You can tell from the guidance we are bullish.”
While Apple has developed different devices and new digital services in recent years, it still relies on the iPhone for more than half of its revenue and profit. And analysts have become increasingly bullish on iPhone 11 sales. Apple has cut some prices and has offered more attractive trade-in deals for its newest smart phone.
