Apple's earnings are likely to have strong impact on investor sentiment. The American group is both the largest company in the world in terms of market weight, a trend leader and a major client for a myriad of subcontractors.
The group’s shares rose 4 percent in extended trading after the announcement. If the company continues on this upward trend, it could become the first ever to reach a market valuation of one trillion dollars. Its current valuation is currently at $933bn, not far from the big T. So far this year, Apple’s stock is up 12 per cent this year, and analysts believe there is room for progression. However, they have suggested that the company needs to launch a new product if it wants to keep its strong revenue and profit growth.
Analysts at Nomura said in a note: “We think Apple’s strong results and guidance show that, even with limited unit growth, revenue can grow nicely with mix shifting to higher-value products and strengthened ecosystem. We think this is positive for component value increase in iPhones, which can balance slower unit growth. Wearable sales continued to be a bright spot in Apple results, and we expect that the new Watch will be launched in late-CY3Q18, with slightly bigger screens, narrow border designs, and new functions such as heart-rate monitoring.”