Apple Inc. (NASDAQ:AAPL) reported strong-than-expected profits for the past quarter

Apple Inc. (NASDAQ:AAPL) reported strong-than-expected profits for the past quarter

Apple Inc. (NASDAQ:AAPL) reported strong-than-expected profits for the past quarter

Apple on Wednesday reported strong-than-expected profits for the past quarter, fueled by growth in digital services and wearables that helped offset slower iPhone sales.

Profit in the quarter ending in September dipped four percent from a year ago to $13.7 billion while revenues edged up two percent to $64 billion.

Apple, set to launch a new streaming television service this week, saw strong revenue gains in its services segment, which includes music, digital payments and software, and in its segment for wearables and accessories that includes its Home Pod, Apple Watch and ear buds.

Apple shares rose some two percent in after-hours trade following the release.

Chief executive Tim Cook said Apple saw its best-ever revenue gains for the fiscal fourth quarter period.

Cook hailed the results as “the conclusion of a remarkable fiscal 2019 for Apple,” and said the company “established new all-time highs for multiple services categories.”

– iPhone sales down –

Apple, which has ceased reporting unit sales of iPhones, said revenue from its smartphones fell nine percent in the quarter to $33.4 billion.

Services accounted for 20 percent of revenues, according to chief financial officer Luca Maestri, with 18 percent growth in the segment to $12.5 billion.

The wearables and accessories category produced revenue growth of 54 percent to $6.5 billion, led by gains in sales of Apple Watch and the wearable Air Pods.

Apple saw modest sales declines in its “greater China” region and in Europe and Japan, but this was offset by gains in North America and elsewhere in Asia.

Apple has been seeking to shift its revenue mix amid a slumping smartphone market and growing competition in the segment.

The company, which recently launched a lineup of iPhone 11 handsets, said it would allow customers to purchase the devices interest-free with its Apple Card and pay over 24 months.

“It’s early but the trends look very good” for the iPhone, Cook said, when asked about sales of the new devices. “We’re bullish.”

Apple said it ended the quarter with some $260 billion cash on hand.

The report comes two days ahead of the launch of Apple TV+, a new streaming service which could challenge Netflix and will compete against an array of others including Disney+ and HBO Max.

Analyst Daniel Ives of Wedbush Securities said Apple “has a compelling list of new shows coming out as we believe it has committed $6 billion annually to the original shows and movies to beef up its streaming content ambitions.”

Ives said Apple has an opportunity to win users with its aggressive pricing of $5 monthly and some 900 million iPhone users worldwide.

“We believe Apple has an opportunity to gain 100 million consumers on the streaming front in the next 3-4 years,” Ives said in a research note.

Cook defender the decision to offer the service free for the first year with purchases of new Apple devices.

“We’re really proud of the content, we’d like as many people as possible to view it,” he told analysts.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 225.24.

The projected upper bound is: 253.43.

The projected lower bound is: 234.41.

The projected closing price is: 243.92.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 25 white candles and 24 black candles for a net of 1 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 50.7457. This is not an overbought or oversold reading. The last signal was a sell 1 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 65.51. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 1 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 53. This is not a topping or bottoming area. The last signal was a sell 1 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 17 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed down -0.030 at 243.260. Volume was 17% above average (neutral) and Bollinger Bands were 58% wider than normal.

Open     High      Low     Close     Volume___
244.760 245.300 241.210 243.260 31,130,522
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 242.11 223.69 198.32
Volatility: 21 28 30
Volume: 23,390,326 26,721,528 27,766,712

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

APPLE INC is currently 22.7% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into AAPL.O (mildly bullish). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 50 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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