Apple Inc. (AAPL) stocks rose on Wednesday following the release of its fourth-quarter earnings report. The report showed that iPhone sales exceeded expectations, leading to strong revenue growth and an increase in revenue guidance for the current quarter.
According to the earnings report, iPhone sales accounted for $28.8 billion in revenue, surpassing analyst expectations of $27.9 billion. The company’s total revenue for the quarter was $64.7 billion, up 1% from last year’s fourth quarter.
The iPhone has long been the cornerstone product of Apple’s business, and its continued success is key to the company’s growth. The latest iPhone models, released in September, seem to have hit the right marks with consumers, resulting in higher-than-expected sales.
Apple’s services segment, which includes its App Store and streaming services, also performed well. Services revenue reached $14.5 billion, setting a new record for the quarter. This is significant, as the services segment is becoming an increasingly important part of Apple’s business as hardware sales slow.
Following the earnings report, analysts raised their price targets for Apple stock. Shares of the company rose more than 5% in after-hours trading on Wednesday, reaching an all-time high of $133. The stock closed at $121.19 on Tuesday.
The strong iPhone sales and services revenue growth give Apple a solid foundation going into the holiday season, which is typically a strong period for the company. The company also announced that they will release new Mac computers powered by their own M1 chips, which are expected to boost sales further.
While the COVID-19 pandemic has brought economic uncertainty to many companies, Apple has been relatively unaffected. The company has adapted to the pandemic by shifting much of its business online, including virtual product launches and online retail sales. This has allowed them to continue reaching customers and selling products even during a pandemic.
Overall, the latest earnings report indicates that Apple is continuing to perform well, even in uncertain times. With strong iPhone sales, record services revenue, and new product releases on the horizon, investors are feeling bullish about the company’s future.