Apple Inc., the world-famous tech giant (which has its stock traded on Nasdaq, the ticker is AAPL) has recently exceeded the bravest expectations made by some analysts from Wall Street, Market Leader reports. In particular, the last quarter of 2014 was a good one for the corporation as it managed to sell more iPhones at higher prices than expected.
The Hi-Tech Department of Masterforex-V Academy reports that the recent quarterly report released by Apple on January 27th, the company’s net profit reached $18 bn over the reporting period. On top of that, this is a 38% gain as compared to the same quarter of 2013 ($13,1 bn).
At the same time, S&P Capital IQ reports that this is the biggest net profit among all 435 companies included in the S&P 500 index since 2009! As for the profit per share, it increased by as much as 48% over the reporting period, thereby going up from $2.07 up to $3.06 (adjusted figures). Meanwhile, Apple’s proceeds boosted by as much as 30% from $74,6 billion up to $57,6 billion. As mentioned above, these figures definitely exceeded all the analytic expectations out there.
Clearly, the financial performance improved mainly thanks to new iPhones - iPhone 6 and 6 Plus. The new cutting-edge devices were introduced to the international public in September 2014, which allowed the corporation to win back a certain share of the global market of smartphones which used to remain lost for a couple of years.
Now it is a question of whether the strong sales of iPhone 6 and 6 Plus do reflect the one-time increase in the demand for large-screen devices or Apple will ultimately be able to back the dynamics and prolong it with the next series along with new devices such as Apple Watch.
According to the Hi-Tech Department of Masterforex-V Academy, Apple is planning to start shipping Apple Watch somewhere in April 2015. it should be noted that this is the first brand-new Apple product since the release of iPad in 2010.
This quarter, which is to end on March 31st, Apple expects the proceeds to be somewhere within the $52-$55 billion range.
As for Apple’s stock, it gained 5% during the postmarked time after dropping by 3,5% down to $109,13/b during the preceding Amerind trading session. The stock has already gained 36,2% since late 2013. However, the companies that manufacture chips for Apple devices saw their stock appreciating at a faster pace and therefore present decent investment opportunities. Let’s have a closer look at those companies:
The first company to consider is Taiwan Semiconductor (NYSE:TSM). This is the world’s biggest manufacturer of computer chips. This is a true heavyweight since its market capitalization is $125 billion. This manufacturer ships iPhone 6 chips. In January 2015, the company reported better-than-expected financial performance in Q4 2014 many due to strong iPhone 6 sales around the globe. After the report, the company’s stock appreciated by 5% during the postmarket.
The second company to pay attention to is Skyworks Solutions (NASDAQ:SWKS). This is the very company that helps iPhone 6 devices connect to the Internet. The company reported units financial performance in the last quarter of 2014 on January 20th. The results exceeded expectations as well. In particular, the quarterly profit per share doubled as compared to the same reporting period of 2013. During the postmarket, the company’s stock gained 1,5% after dropping 1,2% during the preceding trading hours. Since late 2013, it has already gained 185.4%.
The net company to consider is Avago Technologies (NASDAQ:AVGO). Its market capitalization is over 26 billion dollars. This company manufactures chips helping iPhone 6 to filter noises and undesired frequencies. The stock set a new price record after the company reported better-than-expected performance. Since late 2013, the stock has nearly doubled up in price - 98,2%. the all-time high of $107,50 per share was set on January 23rd, 2015.
The last company to consider is NXP Semiconductor (NASDAQ:NXPI). This company with the market capitalization of $18,3 billion manufactures chips for secure mobile payments with iPhone 6, which is the key to success that Apple’s new mobile payment service Apple Pay can enjoy now.
The company also manufactures chips for Samsung, and enjoys a successful business in China. In particular, it produces no-key automobile access systems allowing the owner to unlock the car with the smartphone.
The company’s report is expected to come out on February 4th and may also turn out to be stronger than expected. Since late 2013, the stock has already gained 69,9%. At the same time, the stock set a new all-time record on January 13th.
