Apple (AAPL) Powers Higher After Weak Open
After starting weaker, Apple (NASDAQ: AAPL) is powering higher mid-day and helping lift the averages. Shares are up 1.7% currently helped by positive installment plan growth and strong initial results for Apple Music.
While Verizon's (NYSE: VZ) iPhone activation in Q3 were seen as flat today, investors could be keying on positive news on the installment plans.
Verizon reported that customers purchasing phones on installment plans accounted for ~58% of the phone activations during 3Q15 (vs. Verizon’s expectation of 60%), an increase from the 18%, 12%, 25%, 39%, and 49% reported in 2Q14, 3Q14, 4Q14, 1Q15, and 2Q15, respectively. The company expects this to increase to 70% during the December quarter.
The iPhone installment programs from Verizon, AT&T, Apple, and others are expected to shorten the iPhone upgrade cycle.
Apple's CEO Tim Cook also said that Apple Music had 6.5 million paying subs and 8.5 million free-trial subs. These number are seen as positive as analysts at FBR Capital were estimating just 5 million paid Apple Music subscribers by the end of October.