The apple market calmed fears about the slow iPhone sales and potential delays of the next generation of smartphone with its quarterly earnings report that was released on Tuesday, which sent shares sky rocketing into new record level highs.
Investors and analysts were worried that consumer would avoid buying the smartphones after Chief Executive Tim cook admits in a conference that was conducted in May that there would be a halt in iPhone sales even though there were a lot of publicity for the 10th anniversary iPhone.
There have also been reports that a high-end iPhone is rumored for release this year which hit production problems that would keep it from reaching potential buyers before Apple’s fiscal year ends at the end of September.
Apple beat reduced expectations for iPhone sales with Tuesday’s report, however, posting year-over-year growth despite the launch of the iPhone SE in the year-ago quarter. And Apple’s forecast of of revenue between $49 billion and $53 billion for its fiscal fourth quarter suggests that it does not expect sales of new iPhones to be pushed into the next fiscal year.
The relief washed over Apple’s stock price, which was up by more than 6% to record levels higher than $159 after the trading hours. Apple’s intraday record price is $156.65. Shares closed on Tuesday with a 0.9% gain at $150.05 where the stock surged by 6.3% at the open by Wednesday.
The stock is now up by 37.5% so far in the 2017, which outperformed the S&P 500 index’s gain of 10.7% and an 11.5% increase for the Dow Jones Industrial Average.