Apple had amazing first-quarter results, shaking off investors’ growth concerns. In addition, the company also showed an ability to surprise the market despite weak areas in the global economy. Analysts had to increase the sizes of their spreadsheets and charts after Apple reported on Tuesday: 74.6 million iPhones, a 157 percent gain in China revenues, and $33.7 billion in free cash flow generation for the December quarter. Both earnings and revenues came in above expectations as well. Apple shares went up 5.65 percent to $115.31 on Wednesday.
J.P. Morgan analyst Rod Hall says that around 400 million existing iPhone users haven’t yet upgraded to the iPhone 6 or 6 Plus. T. Michael Walkley of Canaccord Genuity says iPhone shipments could beat Samsung’s total during the December quarter. Walkley went on to say that the fact that Apple could exceed Samsung is even more impressive because the iPhones sold during Q1 were sold at an amount between 2.5 and four times what leading Android manufacturers make per smartphone. Mr. Hall said that the Q1 shipments were “an incredible manufacturing feat” since he believed that manufacturing limits would have kept sales closer to 65 million units.
