Apple credits iPhone 11 demand for record sales | Calamatta Cuschieri

Market Summary

Maltese market closed in red on Thursday, with MSE total index ending the session 0.398% lower to 9,453.466 points. There wasn’t any positive performance on the equity market. Biggest fall, of 4.39% was seen from Lombard Bank Malta plc which closed at 2.18. Followed by HSBC Bank Malta plc which fell 2.78% to close at 1.05. Simonds Farsons Cisk plc and Medserv plc also fell by 0.91% to close at 10.8 and 1.09 respectively.

European stocks staged a modest bounce on Tuesday despite some analysts' warnings that financial markets might be underestimating the impact of the new Coronavirus in China. By the end of trading, the benchmark Stoxx 600 was 0.84% higher to 417.56, alongside a gain of 0.90% to 13,323.69 for the German Dax and a jump of 2.61% to 24,027.63 on the FTSE Mibtel.

US stocks recorded gains by the close on Tuesday, as stocks attempted to undo some of the damage done during the previous session. The Dow Jones Industrial Average closed up 0.66% at 28,722.85, the S&P 500 added 1.01% to 3,276.24, and the Nasdaq Composite was ahead 1.43% at 9,269.68.

Apple has credited a surge in demand for its iPhone 11 for record sales and profits over the Christmas period.

Apple boss Tim Cook also said it was "closely monitoring" the coronavirus outbreak, which has made forecasting for the next quarter difficult.

The company has limited travel and reduced store hours in China, while its suppliers' factories remain closed longer than expected.

Apple said sales in the last three months of 2019 rose 8% year-on-year to $91.8bn (£70.5bn), while net profits increased 11% to reach $22.2bn.

The gains were driven by demand for iPhones and accessories such as watches and AirPods and marked a change from recent performance, which had disappointed with weak iPhone sales.

Overall, Apple said it made about $79bn from products and $12.7bn from services, which includes Apple Pay, new streaming service Apple TV+, game service Apple Arcade and the App store.

The almost 17% growth in services disappointed some analysts, who also noted the firm had offered little insight into the response to Apple TV+.

Still, the overall results beat Wall Street expectations, sending shares up almost 3% in after-hours trade.

 

This article was issued by Nadiia Grech, Junior Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.

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