Apple shares lift as iPhone season beckons

Apple iPhone. File picture
Apple iPhone. File picture
Image: Pexels

Shares of Apple Inc are inching closer to a $1-trillion (R13-trillion) valuation, after the company forecast blowout current quarter sales and analysts on Wednesday said a September launch of new iPhones set the stage for sustained growth.

The company’s shares were up 3.7% at $197.34 (R2,602) in premarket trade – an all-time high – and have gained 12% this year.

Apple forecast fourth quarter revenue of $60bn (R791bn) to $62bn (R818bn), beating the $59.6bn (R786bn) analysts had expected, according to data from Thomson Reuters.

The iPhone maker usually launches new cellphone models in September, which includes a few days’ sales in the fiscal fourth quarter.

This September, the company is widely expected to launch models sporting full screen iPhone X-like displays along with other upgrades.

“We believe Apple is likely to launch three new iPhones in September with possible lower price points, and greater segmentation could lead to yearon-year unit growth in 2019,” Canaccord Genuity analysts said.

Apple’s iPhone X boosted third-quarter margins and created optimism that a new handset with premium features, priced higher than other models, would boost margins further, analysts said.