×

Apple Stock Up After Guidance Suggests That the Next iPhone Will Sell Better

Could Apple have a surprise in store for the next iPhone? Investors clearly think so, sending the company’s share price up more than 4% Tuesday after Apple forecast a strong fall quarter, with revenue guidance of $61 billion to $64 billion for the quarter that includes September’s introduction of the new iPhone.

Apple revealed the forecast for its fiscal fourth quarter as part of its fiscal Q3 2019 earnings release. The company’s most recent quarter was otherwise solid, beating analyst expectations and returning to growth after two lagging quarters. iPhone sales continued to decline, but the company made up much of that shortfall by growing its services business as well as huge growth for wearables.

Apple generated revenue of $53.8 billion during its third fiscal quarter, which ended on June 30, compared to $53.27 billion during the same quarter in 2018. Net income for the quarter was $10.04 billion compared to $11.52 billion a year ago.

Those numbers equal a diluted earnings per share of $2.18, down from $2.34 in fiscal Q3 of 2018. Analysts had expected earnings per share of $2.09 on revenue of $53.3 billion.

Apple stopped including sales numbers for device categories in its earnings results, but revenue numbers for each segment revealed that iPhone revenues were down close to 12% year-over-year.

Wearables, on the other hand, surprised with strong growth, to the tune of 48%. The category includes sales of the Apple Watch, AirPod and other headphones, as well as devices like Apple TV and HomePod. Apple CEO Tim Cook called the results “a blowout quarter for wearables” during Tuesday afternoon’s earnings call.

The company’s services segment actually showed slower growth than in previous quarters. The segment grew just 12.6%, down from the second quarter of 2019, which yielded 16% growth year-over-year. Apple CFO Luca Maestri attributed this to a deceleration in the growth of AppleCare, the company’s hardware servicing business.

As usual, Apple executives didn’t tip their hand with regards to upcoming product launches, with Cook teasing: “We have several new products that we can’t wait to share with you.”

In addition to the next iPhone, Apple is scheduled to launch its Apple TV Plus video service this fall. The company has yet to reveal pricing or an exact launch date for the service, but Maestri cautioned that there may not be an immediate impact on Apple’s revenue. “The road to monetization takes some time,” he said.

Popular on Variety

More Digital

  • Mark Zuckerberg

    Zuckerberg Defends Facebook's Approach to Free Speech, Says Politicians Will Be Allowed to Lie

    Facebook CEO Mark Zuckerberg went to Georgetown University Thursday to explain his views on freedom of expression, and how it influenced Facebook’s policies around dealing with controversial subjects, including political ads that include outright lies. “I’ve focused on building services to do two things: give people voice, and bring people together,” Zuckerberg said. In his [...]

  • Kids' Programming Will Be a Battleground

    Why Kids' Programming Will Be a Major Battleground in the Streaming Wars

    When “Moana” left Netflix on Dec. 20, parents of little kids let out a collective wail of despair on Twitter and Facebook parenting groups everywhere. The phrase “ruined Christmas” was pointedly used in the streamer’s direction — sometimes facetiously, sometimes with the reflected ire of a preschooler who had awakened one morning to find her [...]

  • Nvidia Shield leak

    Nvidia Shield 2019 Model Leaks on Amazon

    The latest version of Nvidia’s Android TV streamer has found its way onto Amazon.com ahead of an official announcement. The new device features a more powerful processor as well as a new remote control. Nvidia didn’t immediately respond to a request for comment. The latest Nvidia Shield is being powered by a Tegra X1+ processor, [...]

  • Star Wars Jedi Fallen Order

    'Star Wars Jedi: Fallen Order': Respawn CEO on Telling the Story Behind 'Becoming a Jedi'

    When it comes to media properties, it doesn’t get much bigger than “Star Wars.” That sentiment certainly isn’t lost on Vince Zampella, CEO of Respawn Entertainment, the studio behind “Star Wars Jedi: Fallen Order.” The title, which follows Jedi Padawan Cal Kestis (voiced by Cameron Monaghan) after the events of “Episode III — Revenge of [...]

  • Star Wars Jedi Fallen Order

    'Star Wars Jedi: Fallen Order': What to Expect From EA and Respawn's Latest

    There’s a lot riding on “Star Wars Jedi: Fallen Order.” The upcoming title from EA and Respawn is the first major single-player “Star Wars” video game since 2008’s “The Force Unleashed,” and is one of the most anticipated games of 2019. After years of multiplayer adventures, could “Fallen Order” be the title that brings the [...]

  • Katie Couric Olympics

    Katie Couric Plots 'SeeHer Stories' for People Magazine

    Katie Couric’s next assignment: Creating digital videos for People. Couric’s media company, Katie Couric Media is teaming with the Meredith-owned magazine to produce the weekly digital video series “#SeeHer Story,” that will feature short vignettes of female trailblazers and rulebreakers. The series is meant to celebrate the 100th anniversary of the 19th Amendment, which prohibits [...]

  • Wonderscope Willowcrest Manor

    Within Adds 'Willowcrest Manor' Ghost Story to Its Wonderscope AR App (EXCLUSIVE)

    Los Angeles-based immersive media startup Within added another augmented reality (AR) story to its children’s storytelling app Wonderscope Thursday: “Willowcrest Manor” gives kids a chance to become a ghost, haunt a house, and scare intruders away from hidden treasure. Wonderscope, which is available for most recent-generation iPads and iPhones, lets children explore animated stories in [...]

More From Our Brands

Access exclusive content