It is worthwhile pointing out that analysts have been predicting trouble ahead for Apple as its days of mega-growth appear to be over so they had low expectations.
On paper the figures looked great, but China sales dipped from the fiscal third quarter, when Apple notched $13.2 billion in revenue there.
The decline is important as many analysts believe China is poised to replace the United States as Apple’s biggest market – only this suggests that it is losing its grip.
Apple, the world’s largest company by market value, said it sold about 48.05 million iPhones worldwide in its fiscal fourth quarter ended 26 September, slightly below analysts’ average forecast of 48.72 million, according to a poll by Fortune magazine.
For the current quarter, which will include a full three months of sales of the new iPhone 6s and 6s Plus models, Apple forecast revenue between $75.5 billion and $77.5 billion. The company’s generally conservative forecast was in line with what Wall Street thought.
Morningstar analyst Brian Colello said the forecast was slightly below expectations but investors were pricing in a worse outcome.
Investors and analysts are more interested in what happens in the Christmas quarter. There is always a spike in sales when Apple fanboys automatically replace their gear. The Christmas rush is a time when Apple should make a lot more money.
Shares in Apple raised when investors believed that things were not as bad as they thought they were for the fruity cargo cult. Then they fell again when they realised they were still just as bad. It could have been worse. Some analysists were predicting 20 percent falls in shares.