Big Things Ahead, But Poor iPhone Sales And China Woes Hurt Apple
Apple Inc. (NASDAQ: AAPL) announced its fourth quarter earnings to anxious investors who had been preparing for a disappointment. The firm confirmed iPhone sales grew at their slowest pace ever and forecast a decline in revenue for the first quarter.
Apple shares are trading below $100 at the moment, down 4 percent in the pre-market session. The Fruit appears to have come to the end of a period of impressive growth, but some analysts say there is still some merit in owning Apple shares.
Apple was forced to raise prices in some markets in order to cope with a stronger dollar, which took a bite out of demand for the company's products. The firm may have to lower its prices in order to spur on further demand, but CEO Tim Cook said he is confident in the company's ability to deliver in the coming quarters.
Big Things Ahead
Apple isn't all about iPhones anymore. The company is working to release a TV streaming service to compete with the likes of Netflix, Inc. (NASDAQ: NFLX) and the firm has also reportedly been developing its own electric car. The car is unlikely to make any kind of significant impact on Apple's valuation in the near future, but the streaming service is expected to make its debut within the next year.
Not only that, but Apple has been improving its Apple Music service and the company is also hoping to revive iPad usage in the coming year through a business partnership with International Business Machines Corp. (NYSE: IBM). Although iPhone sales suffered, some point to the company's installment plans as a bright spot, saying that the firm is setting itself up for a constant revenue stream.
What About China?
However, China remains a concern. China is Apple's largest overseas market, and the nation's economic woes have weighed on the company's bottom line. During the firm's earnings call, Apple warned that the nation's economy was struggling in the first quarter and that it could have an impact on demand.
However, that isn't going to keep Apple from pushing ahead with expansion plans in both China and India, something Cook said would be an important step forward for the company.
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