During the last quarter of 2021, the technology sector was hit by a major crisis. It was partly caused by Covid-19, something that has impacted the entire world. Many large companies in this sector have suffered losses due to chip shortages and rising shipping costs; however, Apple stands out from the rest. The US trillion-dollar company posted the highest quarterly profits in its history, demonstrating that it has been able to manage the supply crisis in the best way possible.
Apple’s presented quarterly results came out to be higher than several professionals and experts on Wall Street estimated. These results are a tremendous victory and even more so in times of crisis.
As announced by the company, the percentage of sales increased by 11% and Apple reached a new record of 123.9 billion dollars in the first fiscal quarter, exceeding the average forecast by several analysts of 119.1 billion. They managed to stave off the downturn with a flurry of new retail products such as the iPhone 13, Apple Watch Series 7, and updated Macs.
These positive results resulted in Apple’s stock rising more than 4% on Friday. However, it was not the only trigger for this company’s shares to be up. There was also an announcement of the company’s ambitions in the metaverse.
Tim Cook, Apple’s CEO, talked about the investments the company has made, expanding its library of 14,000 augmented reality apps. He explained that many of these apps are already available for the iPhone and that the company is launching a mixed augmented and virtual reality headset next year. “We see a lot of potential in this space and are investing accordingly,” he stated. This announcement alerted investors, and a strong positive response was provoked for Apple.
Investors are looking for tanking in Apple after this sector suffered some losses. Fewer sales have been generated and the impending rise in interest rates has made the technology sector less attractive during last month. Even Apple has been in retreat; nevertheless, in early January, the company surpassed the $3 trillion market cap hitting a current value of $2.6 trillion.
However, this could be an even bigger big year for Apple. They are planning their widest range of releases, starting with a new iPhone SE and iPad Air with 5G in the spring. That would be followed by updated Apple Watches, four new iPhones, and several Macs in the fall.
Would you invest in shares of this company? Do you think Apple stock will keep this good performance?
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