Register now for Fin24 Dashboard and get access to portfolios, watchlists, financial comparison tools, and a whole lot more to help you achieve your financial goals.

Data provided by McGregor BFA
All data is delayed
Loading...
Where am I? Home
 
Prices are delayed by 15min.
Join the Fin24.com conversation about JSE-listed stock by using every time you tweet.

Apple shares soar after blockbuster earnings

Jan 26 2012 07:55 AFP

Related Articles

Apple suspends iPhone 4S sales in China

Apple scores in smartphone patent wars

iPhone sales drive record quarter for Apple

Ambushing Apple

Apple storms ahead

Apple is worth as much as all eurozone banks

 

Top Stories

Gauteng road project costs rocket

May 25 2012 13:58

The costs of the first phase of the Gauteng Freeway Improvement Project have increased significantly to almost R90bn, according to a report.

Greek euro worries pressures rand

May 25 2012 19:13

Uncertainty over the future of the euro zone returned to push the rand down against the dollar.

Absa online banking crashes, down all morning

May 25 2012 17:09

Clients hoping to cash in their end of month paychecks at Absa received a nasty surprise after the online banking system fell over.

 
Share Share line Print

New York - Apple shares soared on Wednesday following blockbuster quarterly earnings and the California gadget-maker briefly surged past ExxonMobil to become the largest US company in terms of market value.

Apple shares gained 6.24% to $446.45 on Wall Street while ExxonMobil shares were up 0.02% at $86.38.

Apple's market capitalisation - the number of shares outstanding multiplied by the stock price - was higher than the oil giant's for most of the trading day, but ExxonMobil had moved back in front by the closing bell.

The maker of the iPhone, iPad, iPod and Macintosh computer finished the day with a market cap of around $416bn to ExxonMobil's $418bn.

Apple first surpassed ExxonMobil in market value in August 2011 and the two companies have been jockeying back and forth since then.

In May 2010 Apple dethroned US software giant Microsoft to become the largest US technology company in terms of market cap.

Shares of Apple have risen steadily over the past few years on the release of a string of hit products starting with the iPod in 2001, followed by the iPhone in 2007 and the iPad in 2010.

Apple reported record earnings on Tuesday, driven by strong sales of the iPhone 4S, which was released a day before the October 5 death of Apple's visionary founder Steve Jobs.

Apple's net profit more than doubled in the first quarter of fiscal 2012 to a record $13.06bn, while revenue soared to an all-time high of $46.33bn from $26.74bn a year ago.

Summing up the general sentiment, investment bank RBC Capital Markets spoke of "iDomination".

Apple said it sold 37.04 million iPhones in the quarter which ended on December 31, up 128% from a year ago, and 15.43 million iPads, a 111% increase.

Apple sold 5.2 million Macintosh computers in the quarter, up 26%, and 15.4 million iPods, a 21% decline from a year ago.

Technology market research firm Gartner said that combining Macintosh and iPad sales, Apple sold 20.6 million computers between October and December - more than the estimated 14.7 million PCs sold by Hewlett-Packard during the same period.

Apple also said it ended the quarter with a cash pile of $97.6bn, prompting Canaccord Genuity technology analyst Michael Walkley to speculate that the company may declare a dividend.

"We believe Apple is likely to announce a dividend during 2012, potentially next quarter when crossing $100bn in cash and cash equivalents," Walkley said.

"We believe Apple is well positioned for very strong 2012-13 sales and earnings growth driven by new product introductions, including the pending refresh of MacBook Air, the iPad 3 launching this spring, an LTE iPhone likely in the third quarter of 2012 and potentially Apple TV exiting 2012," he said.

Walkley also raised his price target for Apple shares to $650 from $560.

The death of Steve Jobs has sparked endless speculation about whether Apple's engineers will be able to continue to churn out the hits in his absence.

Tim Cook, who took over as Apple chief executive from an ailing Jobs in August, made it clear on Tuesday that he believes they can.

"Apple's momentum is incredibly strong, and we have some amazing new products in the pipeline," Cook said.

 
 
Comment on this story
1 comment
Add your comment
Comment 0 characters remaining
Facebook's intrinsic value
May 23 2012 11:32

When it comes to judging a company’s worth, value investors like Warren Buffett look at intrinsic value. By that measure, Facebook’s shares are worth less than $10. A Reuters analyst breaks down the math. (Reuters)

NicolaaSmith

CIPPA equals automatic zero erosion in the constant item economy We do not have stable – as in fixed real value – money. The real value of money is generally accepted by the public at large to be stable – as in fixed – in low inflation economies, but this is not true. The be... Read their blog...

Recently updated
Podcasts
The Sishen saga

Legal expert Peter Leon on the increasingly complex legal wrangle over the Sishen Iron Ore mine. Time: 8:17 Listen Here...

Before you list

Is the clarion call of the JSE calling? Listen to Fin24’s expert panel discussion before you list your small business. Time: 17:29

Compare and Buy

Compare and apply for hundreds of financial products from many suppliers.

Credit cards Medical aid Current accounts Think Money

Money Clinic

Money Clinic Do you have a question about your finances? We'll get an expert opinion.
Click here...

Loading...