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Apple (AAPL): Next Quarter Guidance Falls Short - CITIC

November 2, 2018 6:58 AM

Citic Securities analyst, Xu Yingbo, cut estimates on shares of Apple (NASDAQ: AAPL) after the company reported financial results and guided to revenue of $265.6 billion (+16%) and net profit of $59.5 billion (+25% growth). ASPs showed double digit growth for the fourth quarter in a row while sales volumes levelled. This elevates the importance of sales volumes for the XR going forward.

The analyst stated "The hardware layout expanded and content ecosystem and AR progress are key areas to watch for". "Despite sales slowdown, operating revenue and profit have continued to rise. As for the long term, Apple spent $3.7 billion on promoting content services in the fourth quarter. We recon that Apple's investment in intelligent hardware such as AR and autopilot will be the key layout in the post-mobile phone era".

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $209.97 yesterday.

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