California-based Apple Inc. (NASDAQ:AAPL) reported earnings of $2.10 a share on record revenue of $123.95 billion, compared to Wall Street analysts consensus for earnings of $1.89 a share on $118.4 billion in revenue.
Tim Cook’s plan to invest heavily in the metaverse and expand its augmented reality apps is also lauded by investors.
Apple’s holiday quarter highlights
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Apple delivered another robust performance in the quarter that includes the holiday season. Record revenues were driven by iPhone sales, which garnered $71.6 billion in revenue, up 9% from last year and ahead of analysts’ expectations for $68.34 billion.
“This quarter’s record results were made possible by our most innovative lineup of products and services ever,†said Chief Executive Tim Cook in a statement. We are gratified to see the response from customers around the world at a time when staying connected has never been more important.
Its services segment, which includes revenue from Apple Music, iCloud, search licensing, and other services, grew to $19.5 billion in the first quarter, reflecting an increase of 24% from the year-ago period. Strong results also came from the Mac segments, with revenue jumping 25% year over year to $10.85 billion.
Metaverse Plan
In an investor call, Time Cook stated Metaverse applications are very promising, and the company plans to invest significantly in the technology. There are currently 14,000 AR apps in Apple’s App Store, and the number will grow with additional investment. He said,
We’re always exploring new and emerging technologies and I’ve spoken at length about how it’s very interesting to us right now
Reports from analysts such as Ming-Chi Kuo indicate Apple will release an AR headset this year or next, followed by glasses. However, Apple has not confirmed the plans publicly.
Upside movement is likely despite broader market challenges
Apple’s stock price bounced back in the post-market trading after the company released first-quarter results, with several technical indicators like moving averages and MCAD hints further upside ahead. Apple’s stock traded above the $180 mark early this year.
Final thoughts
Apple has proven to be one of the most reliable stocks to own over the long run due to its long-term growth potential and innovative product launches. Financial growth is expected to continue in the following quarters of 2022 for the company. New investors have a great opportunity to buy Apple stock following the recent price decline.
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