We’ve already written ad nauseum about the iPhone 5S and 5C, but the addition of each to the iPhone family has bolstered the company’s sales and forced Apple Inc. (NASDAQ:AAPL) to reevaluate its numbers for the upcoming quarter’s reporting.
Apple iPhone 5C and iPhone 5S oversold
Apple Inc. (NASDAQ:AAPL) saw its best sales numbers immediately following a new iPhone launch with over 9 million iPhone 5S and 5C’s sold over the weekend.
ValueWalk's Raul Panganiban interviews Kirk Du Plessis, Founder and CEO of Option Alpha, and discuss Option Alpha and his general approach to investing. Q1 2021 hedge fund letters, conferences and more The following is a computer generated transcript and may contain some errors. Interview with Option Alpha's Kirk Du Plessis
“The demand for the new iPhones has been incredible, and while we’ve sold out of our initial supply of iPhone 5S, stores continue to receive new iPhone shipments regularly,” Apple Inc. (NASDAQ:AAPL) CEO Tim Cook said today in a statement. “We appreciate everyone’s patience and are working hard to build enough new iPhones for everyone.”
Given this sales surge over the weekend, Apple Inc. (NASDAQ:AAPL) filed an 8-K form with the Securities and Exchange Commission today stating that it expects its next quarter’s sales to come in at the high end of the estimate it made in July. Specifically, Apple Inc. (NASDAQ:AAPL) is speaking of the quarter that will end on Saturday and will also mean the end of its fiscal year.
Apple’s expectations for 4Q results
“Apple Inc. (NASDAQ:AAPL) expects total company revenue for the fourth fiscal quarter to be near the high end of the previously provided range of $34 billion to $37 billion, and expects gross margin to be near the high end of the previously provided range of 36 percent to 37 percent,” the company said.
Not only did the weekend surpass analysts expectations of 5 to 6 million units sold, it appears to have surprised the Cupertino company as well.
Apple Inc. (NASDAQ:AAPL), for the first time, released two phones simultaneously and are not obligated to distinguish between which phone outsold the other. That will come when they report this quarter’s numbers next month. It is, however, believed that the company sold more of the more expensive 5S then they did the “cheaper” iPhone 5C.
Predictions for revenue
Analysts are predicting that Apple Inc. (NASDAQ:AAPL) will report quarterly revenue of around $36.1 billion, with earnings per share of $7.66. That would be just barely up from the $36 billion in sales the company reported during the same quarter last year, and down from the $8.67 in earnings per share.
After falling off tremendously from its all-time high last September, Apple Inc. (NASDAQ:AAPL) has steadily been making a return to this mark.
This morning’s iPhone sales numbers sent Apple Inc. (NASDAQ:AAPL)’s stock soaring. Earlier shares were selling at $485.75, which is up $18.34, or 3.92 percent. At the time of this writing, Apple Inc. (NASDAQ:AAPL) is up further still trading at $490.39 up nearly $23 on the day for a gain of 4.92 percent.