Apple share closed nearly nine percent up at $610 per share Wednesday after the computer giant announced Tuesday evening that iPhone sales had boosted revenue to $39.2 billion in another blockbuster quarter.
In after hours trading, the stock continued to rise slightly, up to $610.10 per share, still off from its all-time high of $644. This reflected a buoyed market overall. The Nasdaq tech stock index closed up 2.3 percent, and the S&P 500 was up 1.36 percent.
The earnings report shattered analysts more cautious predictions for the Cupertino, Calif.-based company. Apple stock had lost about 13 percent of its value in recent days amid chatter that wireless carriers were thinking of cutting subsidies for the mobile phone. Low iPhone sales reported by AT&T and Verizon also had some investors worried.
But Apple said it had 35.1 million phones in the first quarter, with skyrocketing growth overseas. Apple chief executive Tim Cook said Tuesday that iPhone sales on mainland China had increased five-fold.
“The iPhone number was impressive, especially after the weak numbers seen out of AT&T and Verizon,” Motley Fool senior analyst Joe Magyer told The Washington Post. He said that AT&T and Verizon’s numbers, which are U.S.-centric, painted an incomplete picture of the company’s sales.
He was impressed by Apple’s dramatic expansion oversees. “The U.S. is not just the wealthiest market, but also their [Apple’s] home market. A $600 iPhone is a major purchase in a developing country,” he said.
Apple also reported that it had sold 11 million iPads in the quarter that ended last month— below analysts’ expectations of about 13 million.
Magyer said that consumers don’t have the same turnover schedule for the iPad that they do with the iPhone. But Apple said Tuesday that it’s is still feeling constraints in the tablet’s supply line and is selling them as quickly as it can make them.
When it unveiled its new iPad last month, the company also lowered the price of its earlier iPad 2. Cook said that it was too early to tell what effect that price cut had on Apple’s tablet sales overall. But he said he believed it did “unlock” some demand from educational institutions, who are buying up iPads quickly.
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