Apple hits record high on iPhone comeback and booming demand for Airpod headphones and watches
Apple shares hit new records after the iPhone triumphantly returned to growth.
The stock soared as high as $327 (£251.25) yesterday after a ‘blockbuster’ Christmas sales update, cementing its place as the world’s only £1trillion listed business.
It came after sales surged in the final three months of 2019, with iPhone sales up for the first time in a year and demand booming for wearables such as the Airpod headphones and Apple Watch.
Apple CEO Tim Cook presents the new iPhone 11 in September last year. Stock soared as high as $327 yesterday after a ‘blockbuster’ Christmas sales update
Apple was last night worth nearly $1.4trillion (£1.1trillion). Its nearest competitor was Microsoft, worth almost £990billion.
Wall Street was taken by surprise, and boss Tim Cook called it a ‘blockbuster quarter’.
He added: ‘Our record performance was fuelled by iPhone. We had double-digit growth in many developed markets, including the US, the UK, France and Singapore.’
Analysts have long been sceptical about new iPhone models.
But Cook said iPhone 11’s ‘unprecedented’ battery life and high-end camera were vital. It was launched in September but the final three months of 2019 were the first full quarter it had been on sale for.
Russ Mould, investment director at AJ Bell, said: ‘Apple has rediscovered the sweet spot when it comes to iPhone pricing.’
Jim Suva, a tech analyst at Citi, added: ‘Some products such as Airpods and the watch are selling out – not because they’re having issues with production, it is simply because demand is so strong.’
He added: ‘The company keeps making more money and margins are also going higher.
‘It’s setting up for a very good opportunity and a reason why we think people should buy and own Apple stock.’
However, it is thought to be bracing for the impact of the coronavirus in China, a major manufacturing hub for Apple. Analysts fear production could be affected.