Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

Apple share price set to rise as iPhone sales deliver again

Apple Store

The Apple share price hit its highest levels since August earlier this week and looks set to open higher when US markets reopen later today, as it continues to set itself apart from the wider market turmoil being seen elsewhere.

It’s also notable that Apple has been one of the few tech companies that hasn’t announced widespread job cuts, and last night’s Q2 numbers once again pointed to another strong quarter, even though revenues still declined from the same period last year. This was the second quarter in succession Apple had been unable to grow its revenues, the first time this has happened since 2016, but the fall of 3% was below the 5% Apple predicted when they reported in Q1.  

Last night’s Q2 numbers saw revenues and profits beat expectations, coming in at $94.84bn, down from last year's $97.3bn, while profits came in at $1.52c a share.

iPhone revenues led the way with $51.33bn, comfortably ahead of forecasts, and a record for Q2, while services revenue only saw a modest improvement to $20.9bn, also a record number, although it did come up short of consensus.

Wearables, which include the Watch, returned $8.75bn, also coming in above expectations, while Mac revenues saw a big drop from last year’s $10.4bn, and also fell 7.4% short of forecasts at $7.17bn.

iPad revenues were $6.67bn more or less in line with forecasts, with Apple announcing another $90bn of buybacks and increasing the dividend to $0.24c a share.

On a regional basis the Rest of Asia Pacific was a notable outperformer seeing revenues of $8.12bn, an 18.55% beat on forecasts, as well as a big jump from last year with India driving a lot of the gains. The Americas were the one area of disappointment with revenues of $37.78bn, a big drop from last year’s $40.89b, a more than 7% decline.      

On a side note, Apple benefited from the recent banking turmoil after launched its new banking service and a new savings account with a 4.15% interest rate, seeing inflows of almost $1bn in the first days of launching with 240k accounts signing up to the service, although you need to have an Apple credit card to qualify.

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

Before you go…

Try a demo of our Spread Betting or CFD trading accounts on our innovative platform. Free of charge and risk-free with virtual capital starting from €10,000.