This article is about how Apple had become the most profitable company 20 years after almost becoming bankrupt. It discusses how the institution has eclipsed all sales targets.
- “Stunning”, “outstanding”, “a monster” were some of the analysts’ reactions to numbers showing the Silicon Valley firm had made $18bn (£12bn) in just three months – by selling 34,000 iPhones an hour around the clock from October to December. It now has $178bn cash in the bank.
- Apple was 90 days away from bankruptcy when Steve Jobs rejoined it in 1997– as he later revealed – but Apple now tends to downplay its financial success ahead of quarterly profit announcements in order to surprise investors and analysts.
- This quarter’s profits were on another scale, though. Sales in the three months to the end of December were up 30% to $74.6bn. Those profits of $18bn were up 37%.
- Katy Huberty, an analyst at Morgan Stanley, said it was a “quarter for the record books” and increased her share price target from $126 to $133, indicating she believes there is more growth to come. The shares, which jumped 5% in after-hours trading following Apple’s results, closed at $117 on Friday.
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