Beating expectations is the habit of Apple. It has shown a staggering growth rate all across the world, with bulk of sales coming from the emerging Asian countries and the US. But the surprising fact is its growth in Europe, given the region’s current economic woes.
A research by FactSet shows that, in Europe, Apple Inc. (NASDAQ:AAPL) is likely to record 32.3 percent year-on-year growth rate in the second quarter. Of the ten largest S&P 500 companies, only three are expected to record sizable growth and Apple is one of them. The company is growing strongly in Europe despite high unemployment rate and increasing burden of debts on governments.
On an average, 23 percent of the total revenue of top 10 S&P 500 companies came from Europe in the first quarter. The research indicates that profits of most of the American companies will decline heavily in the second quarter this year. Against the tide is Apple with 32.3 percent growth rate, which is way more than the runner-up Intel’s 4.5 percent.
iPad maker will be the single largest contributor to the sales and earnings growth rate in the IT sector of S&P 500. If Apple is excluded from the list, the IT sector’s earning growth will decline from 4 percent to -1.7% and the sales growth would drop from 6.6 percent to 3.4 percent.
The overall growth of S&P 500 index in second quarter is expected to be 3.2 percent. It heavily depends on the growth of Apple and Bank of America. Without these two heavyweights, the index’s growth rate will fall to -2.1 percent.