Apple Shares Surge as Company Explains Life Beyond the iPhone

By | 01/30/2019

The shares of Apple Inc. has surged earlier today after the company convinced invested that they will still thrive beyond iPhone.

AAPL rises 5.5 percent following investor meeting

AAPL, Apple’s stock surged by 5.5 percent at the pre-market trading earlier today after the company convinced investors that they would thrive beyond iPhone. The company recorded its first holiday-quarter sales decline since 2001, with their revenue dropping by roughly 15 percent. The slight rally in the company’s stock could impact the tech sector, with other giants also struggling recently.

Apple suppliers saw their shares also surge higher early this morning following this revelation. Dialog Semiconductor Plc surged by 2.2 percent earlier today, while STMicroelectronics NV added 3.2 percent in Paris. In Switzerland, AMS AG surged by 6.4 percent while Hon Hai Precision Industry Co. Ltd., Pegatron Corp., and Wistron Corp. all recorded gains in Asia.

However, CEO Tim Cook and CFO Luca Maestri were focused on service business that was growing and the rise in sales of other devices. Apple saw an increase of 9 percent in the sales of Mac while iPad sales surged by 17 percent. Apple’s wearable products like Apple Watch and AirPods also witnessed an increase of 50 percent or more during the last quarter

The company also recorded an increase in usage of their Apple Pay and Apple Music. Apple is now expecting the number of subscriptions to reach 500 million by 2020. Cook also revealed that Apple is looking to venture further into the original content business. This would see it compete with other giant companies such as Netflix, Hulu, and Amazon Prime in that sector.

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