After showing upside from its short-term consolidation pattern yesterday, Apple shares confirmed the bullish momentum when the company’s earnings report was released. Price gapped up from its previous day close and surged up to the resistance around the previous highs of $132.50/share.
Stochastic is moving up but is already in the overbought area on the daily time frame, suggesting that buying pressure might fade soon. However, the upbeat results of the earnings report might be enough to sustain gains for Apple shares in the coming weeks.
Apple Shares Earnings Report
Apple’s earnings report revealed that the company has sold 61 million units of iPhones during the first three months of 2015, which is 40% higher compared to the same period last year. This accounted for around two thirds of the company’s $58 billion revenue for the quarter.
On the other hand, iPad sales have tanked, as the company sold only 12.6 million units in the past three months. This is lower by 16.3 million units compared to the same period last year. This suggests that the company might want to focus more on its iPhone sales rather than tablets sales moving forward, although Apple CEO Tim Cook mentioned that the iPad could have a better future in business settings.
“I believe the iPad is an extremely good business over the long term,” Cook said. “Precisely when it begins to grow again, I wouldn’t want to predict. But I strongly believe that it will.”
Sales of laptops and desktop computers have also picked up, even though the industry has seen a continuous decline in market share for these devices. Apple shares gained a boost when the earnings report showed that sales of Macbooks contributed $5.6 billion to the company’s revenue for the quarter, with unit sales growing by 10% during the period.
Sales forecasts for the iWatch have also contributed to the positive outlook for the company, which could draw further revenue from wearable technology.
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