In the night from Tuesday to Wednesday, Apple reported the results of IV quarter of 2016 financial year. The income of the company for the period amounted to $of 46.85 billion, and net profit – $9 billion Over the same period last year these figures were $51.5 billion and $11.1 billion respectively. Therefore, net profit for the year decreased by $7.7 billion from $53,39 billion to $45, 69 billion, and revenue fell $of 18.06 billion – c $233,72 billion to $billion 215,64 nevertheless postmarket the company’s shares dipped 2.5%. Why the market does not hurry with the sale?
Fomag analysts believe that the significant drop in Apple shares has saved two positive things: first, revenue growth of the division “Services”, which increased 25% to $6.3 billion and, secondly, a strong Outlook for sales of iPhones and as a consequence, revenues in the current quarter. The company also maintained the quarterly dividend unchanged at $0.57 per share.
Analysts believe that Apple will reach or exceed the established goal for revenue at $76-78 billion And here’s why: the incredible hype for the new iPhone 7 and 7 Plus proved a successful model. The first problems with the sales of Apple started a year ago due to weak interest in the iPhone 6s. Also due to the lack of new devices on shelves for the first time after the launch of the smartphone. The main sales of new models will be exactly the current quarter. Do not forget about the traditionally high results of Apple during the holidays, as well as additional fourteen weeks, which was formed from the specifics of the statements of the company.
Separately, analysts distinguish the division “Services”, including content sales through the App Store/iTunes and via a subscription model through the Apple Music, and also the payment service Apple Pay, and others On this business, hopes, and while it justifies the growth of the App Store added the fifth consecutive quarter, while the volume of payments through the newly-launched Apple Pay in September have increased over the year by 500%.
The proportion of income units “Services” has already exceeded revenue from the iPad and Mac computers. Although it is still relatively small – only 13.5% of total revenues (for comparison, the iPhone accounts for more than 60%). In my opinion, the success of this unit provide psychological support for the stock. Besides, Apple is in no hurry to throw all forces on development and promotion of new services, including the expected competitor Netflix. Buy AT&T of media giant Time Warner, which also was interested in Apple messed things up “Apple Corporation”.
Soon investors will follow the results of the sales and expect the financial report for the current quarter. Analysts predict that Apple stocks will continue growing and will grow by another 10% to their absolute maximums at $130 on the horizon to 6 months.
