Apple’s profits soar on record sales in China
Has anybody any idea for how long the shares of Apple will be on an uptrend and which is the right price? Carl Icahn does. He thinks that Apple’s shares must be valued at least $200. It would be not bad for the seventh largest shareholder of Apple with around 53 million shares in his pocket. In fact Carl Icahn is not the only big investor optimistic on Apple’s perspective. Investors have started to believe for real that $200 per share is not too much for a giant like this.
The sales report released yesterday from Apple can only give reason to Carl Icahn. In fact the company has surpassed analysts’ expectations. Apple reported $58 billion of sales in the last quarter that means 27% more than the same period of last year. Profits were $13.6 billion, up from $10.2 billion of the same period last year. The biggest surprise for investor was the China’s numbers. Sales in the entire China (including Hong-Kong and Taiwan) rose 71% from last year. The record sales of $16.8 billion have made China the first national market for Apple. It’s the first time that China’s sales are bigger than US sales and Europe’s sales..
The CEO of the company Mr. Tim Cook continues to be extremely optimistic about this market and the potential it has to grow further. It seems that Chinese people have welcomed the new I-phone 6 including the bigger screen. In this same period Apple sold 61 million I-phones that represent a record for the company and also a surprise for the analysts. The expectations were for only 59 million of phones. Apple also sold 12.6 million I Pads and 4.6 million Mac computers. Now investors are expecting to see how many Apple’s Watches will be sold, as the company has just started to sell the product.
The company said it will raise the dividends for the shareholders and will repurchase own shares at a record level of $140 billion. The cash of the company continues to remain in record levels around $193 billion. These decisions are only good news for Carl Icahn which is convinced that Apple’s value is much bigger than 1 trillion dollars.