×

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

  • Ann Sarnoff Warner Bros

    Ann Sarnoff Formally Takes Reins of Warner Bros. as CEO

    The Ann Sarnoff era at Warner Bros. has begun. Sarnoff formally took the reins as Warner Bros. chair-CEO on Thursday, two months after she was appointed to the post. Sarnoff told employees in a memo that she has been impressed by the company’s track record during the past year amid a period of upheaval for [...]

  • YouTube TV Adds Subscription Options for

    YouTube TV Adds Subscription Options for AMC Networks' Acorn TV, UMC

    Google’s YouTube TV now offers two more add-on channels to subscribers, under an expanded pact with AMC Networks: British TV service Acorn TV and UMC (Urban Movie Channel), which features a selection of black TV and film titles. Acorn TV’s add-on channel is now available via YouTube TV for $6 per month and UMC is [...]

  • homepod-white-shelf

    Apple Said to Prep Cheaper HomePod for 2020

    Apple is getting ready to introduce a cheaper version of its HomePod smart speaker in 2020, Bloomberg reported Thursday. The company is also working on a new version of its AirPod headphones for next year, according to Bloomberg. Apple didn’t immediately respond to a request for comment. The new version of the HomePod is said [...]

  • Eminem’s Publisher Sues Spotify, Claiming Copyright

    Eminem’s Publisher Sues Spotify, Claiming Massive Copyright Infringement

    Eminem’s publishing company Eight Mile Style filed a major copyright infringement lawsuit against Spotify late Thursday, claiming that the streaming giant has no license to host about 250 of Eminem’s songs, while also taking aim at the Music Modernization Act, the federal law enacted last year to improve royalty payments for songwriters. The news was [...]

  • iQIYI headquarters building in Beijing

    China’s iQIYI in Talks for Indonesia Expansion

    Chinese streaming firm iQIYI is in negotiations to expand further into Southeast Asia through a venture with Indonesia’s Media Nusantara Citra. iQIYI announced its first step outside Chinese-majority territories in June, when it revealed a linkup in Malaysia with pay-TV leader Astro. It also operates in Taiwan. In April, the company said that it planned [...]

More From Our Brands

Access exclusive content