FILE PHOTO: The logo of Apple company is to be seen outside of an Apple store in Bordeaux, France, on March 22, 2019 at the latest. REUTERS/Regis Duvignau
(Reuters) – Shares of Apple Inc (AAPL.(O) rose 4.2% on Wednesday, after the company has soothed Wall Street and the nerves, an improvement in sales in China, and several real estate brokers also predicted an increase in the provision of services, and the launch of a new iphone in the second half of the year is 2019.
If the gains keep up, Apple would be within touching distance of topping $1 trillion in market value just shy of being the world’s most valuable company, and Microsoft Corp’s (MSFT.D). Apple had to 4.53 billion shares outstanding at the end of the last quarter of the year.
In it’s earnings report after the markets closed on Tuesday, Apple said revenue from services increased 12.6% to $11.5 billion in the three months through June, offset by a 12% fall in global iPhone sales at just under $26 billion.
“We were particularly pleased with the double digit increase in the provision was driven by strong growth of its App Store in China,” Chief Executive Tim Cook told a conference call after the results.
Jpmorgan analyst Samik Chatterjee, who rates the stock ‘Overweight’, saying that he believed that Apple, with the transformation of the service and a strong product cycle, have a strong reason to own the shares.
At least seven of the 43 real estate brokers, who rate Apple’s shares raised their price targets for the stock by Citigroup to increase the price target from $45 to $250. The median value of the of the current recommendations, is $217.
In mainland China, Cook said, and the total number of Apple device users has grown, in the fiscal third quarter, driving to a lake or to an increase in the sales of services provided by the company to be in the world’s second largest economy in the world.
Concerns about a slowdown in China, where iPhone sales continued to decline, has helped to make Apple’s share price is lower than in the previous year’s high. However, it is still 50% of the value of a point hit in a sell-off at the end of last year.
“If there’s a China slowdown, and clearly no-one told Tim about it,” Evercore analyst Amit Daryanani wrote in a note.
Reporting by Tanvi Mehta and Akanksha Rana, Bengaluru; editing by Patrick Graham