Chip shortages may crimp future sales, but Apple has proved it can weather any storm.
Apple (NASDAQ:AAPL), America’s largest company, smashed records across the board in its second quarter results, confirming the ongoing global appeal of its iconic products. Disciples snapped up new products, but a new army of high-tech consumers have turned to Apple tech as they work from home during lockdowns.
Every geographic region generated more revenue than ever before as quarterly revenue rocketed 54% to $89.6 billion. That absolutely crushed Wall Street forecasts for around $77 billion.
Every one of Apple’s products grew sales by double-digit percentages, and demand for new 5G phones had iPhone sales up almost two-thirds to $48 billion. Net profit more than doubled to $23.6 billion and earnings per share of $1.40 was up from $0.64 a year ago.
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Apple hasn’t been immune from the global chip shortage, and problems sourcing enough of them is already affecting sales of iPads and Macs. This could cut third-quarter revenue by as much as $4 billion. But despite the chip shortage, the strength of its second-quarter sales should trigger profit upgrades on Wall Street.
Apple’s share price has almost doubled over the past 12 months, but the valuation does not appear overly stretched, especially given the breadth of its product range. A new iMac and iPad are the latest gadgets for Apple disciples to snap up. That leaves potential for further upside.
Shares were up as much as 4% in after-hours trade, but $140 will be a major milestone given Apple has failed to make a move above that level stick in past.
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