William Blair: Investors Should Continue To Hold Apple Shares

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According to Anil Doradla, analyst at William Blair, there were a lot of factors including great success in China that contributed to the better-than-expected results declared by Apple Inc. AAPL on Tuesday. Doradla was on CNBC to discuss why investors should continue to hold on to their Apple shares.

"I, like everyone else, had high hopes going into the quarter, but clearly Apple defied everyone’s expectations," Doradla said. "I think there were three key points here right.

1. Blowout iPhone Numbers

'There were three factors that played together. One was Samsung faltering and Apple gaining share, Apple finally launching these products in China, and there was a pent up demand for a larger screen size phones."

Related Link: 3 Ways Apple Is Changing Retail

2. The Chinese Front

'What was spectacular is that the China revenue contributions now are very comparable to that of whole of Europe. Now, this defies many quarters of investment community who has always said that, look, if you want to sell in China, it has to be cheap phones, unless you sell products which are cheap you won't succeed in China," Doradla said.

"I think it clearly debunks that thesis and people would be looking at China as not a low-cost country, but where people can spend money"

3. Capital Gains

"The company talked about $103 billion returns of their $130 billion that was authorized.Tim Cook clearly said, in April there’s another announcement coming. So, could they authorize another $100, $130 billion? Remember this is a $660 billion market cap company. So, potentially this company could return anywhere between 10, 15, high teens percent of their market value to investors."

He concluded, "So I think overall it was spectacular. No complains, I think, we are in the stock and we are recommending investors to hold on to it."

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Posted In: Analyst ColorCNBCAnalyst RatingsMediaAnil DoradlaWilliam Blair
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