Apple to Beat its Own Record

Apple Inc. is set to beat its own record for the most profitable quarter in corporate history when the company will reports its earnings on Thursday, with analysts predicting net income of at least $19 billion.

Apple was expected to beat its own record for the most profitable quarter.

Last year, the California-based company’s fiscal first quarter and traditionally its biggest, it the first to include sales of its new iPhone X and is expected to beat its previous quarterly record of $18 billion net income in the year 2015.

The executives of Apple stated in November that they were expecting its “biggest quarter ever” and a return to double-digit revenue growth during the holiday season for the first time in years.

This week, the U.S. corporate earnings season is in full swing, with other tech leaders such as Facebook, Alphabet, and Amazon expected to report higher revenues and profits.

The strong tech sector earnings are likely to keep an analyst’s recent bull run intact after equities had their best opening to a year since 1987, buoyed by tax reform and a weaker dollar.

The S&P 500 tech sector has already increased nearly 9 percent in January after surging 37 percent last year.

Apple's shares, on the other hand, hit a new all-time high above $179 in mid-January, taking its market capitalization above $900 billion, but have since ebbed slightly to $171.

According to Canalys, an analysts at Market Researcher, they estimated that Apple shipped 29 million iPhone X’s in the quarter, making it the top-selling smartphone in the run-up to Christmas. 

Some analysts forecast that the company sold 81 million iPhones in the quarter, driving total revenues up to 11 percent to about $86 billion.

With iPhones expected to make up more than two-thirds of Apple’s total sales, some analysts are more optimistic about the result. Morgan Stanley, a leading global financial services, forecasts that the revenues of Apple will jump 18 percent to $92 billion, with a net income as high as $21 billion.

Meanwhile, an analyst, Neil Cybart, believes that the average selling price of an iPhone could jump by more than $100 to a new record.

“Apple saw stellar iPhone X sales” in the quarter, Cybart stated, because the company was able to overcome concerns that it was unable to manufacture enough devices to meet demand. “Apple’s supply chain was able to ramp iPhone X production much faster than anyone expected,” added Cybart.

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