Apple was projected to have a strong Holiday quarter and their own guidance predicted such, but today brought confirmation that they did even better than expected. They beat their projection of $85.5 billion to $89.5 billion by taking in $91.8 billion for Q1 of financial year 2020. Apple also beat the street’s estimate of $4.54 per share profit by posting $4.99 for the quarter.
Apple’s recent earnings weren’t pretty, but they also weren’t worse than expected after Tim Cook’s letter offering revised guidance a few weeks ago. They simply offered us a definitive confirmation of what many in the tech press and Apple community already suspected. Whether it is due to stagnation, high prices, overall slowdown in the smartphone market, China, or all of the above, the iPhone has plateaued. However, if you look beyond that basic fact, there is more to this story.
Photo Source: @tim_cook on Twitter
Analysts that cover Apple finally got to be the broken watch that’s right twice a day. After so many botched predictions, at last they got to celebrate calling a slowdown in iPhone sales. While there are some who did have sound financial reasoning behind their predictions, I have a hard time giving any respect to many who just threw crap against the wall until it finally stuck. But to the few who called this based on sound analysis, a tip of the proverbial cap for sticking to their guns when the rest of us thought they were crazy a couple of months ago.