Apple climbs to record share price of 129.45 on high Watch sales forecast.
News this week reported by the Wall Street Journal saying that Apple have placed orders of 5-6 million Watch units with Quanta Computer Inc, the chosen Taiwan manufacturer, has encouraged bullish movement on the tech company’s stock. USTECH100 [Nasdaq] saw Apple move 1.9% to record highs on Tuesday, whilst the U.S exchange also touched a record high of 4389 on Wednesday.
According to CCS Insight in a report released on Tuesday, Apple Watch will ‘account for over a quarter of wearables shipments in 2015. By 2018 almost 350 million wearable devices will be in use worldwide.’ Adding, ‘The next 12 months will be a transformative year for the wearables market thanks to the arrival of the Apple Watch. This highly anticipated smartwatch will create a frenzy of demand, catapulting it almost instantaneously to be the most successful smartwatch ever.’
Other news that Apple has finally joined in the race to produce a car has also excited the markets. Project Titan is led by engineering mastermind Steve Zadesky who was also key in the creation of the iPod and iPhone. Under Zadesky’s eye, Project Titan was given the go ahead last year to produce the Apple car, reported to be in progress in a secret research centre in California.
Last quarter earnings reports put Apple in a position of strength with record quarterly revenue of $74.6 billion and record quarterly net profit of $18 billion, or $3.06 per diluted share. These results compareD to revenue of $57.6 billion and net profit of $13.1 billion, or $2.07 per diluted share, in the year-ago quarter. The results were fueled by all-time record revenue from iPhone and Mac sales as well as record performance of the App Store. iPhone unit sales of 74.5 million also set a new record.
Earlier in the year Apple also set a new record for billings from the App Store. Apple customers worldwide spent nearly half a billion dollars on apps and in-app purchases, and New Year’s Day 2015 marked the single biggest day ever in App Store sales history. Apple reported at the time that the developer community had earned over $25 billion.
MT4 chart: APPLE
MT4 chart: USTECH100
Trade stock CFDs on STOCK.com with full training given to all clients