The FQ4 revenue was a staggering $36B that beat Wall Street estimates by $200M. There were as many as 26.9M iPhones sold which were above expectations. But the 14M iPads and 5.3M iPods sold were below expectations.
Apple stock halted trading as the earnings report for Q4 came through. When they did resume trading, they were down 2.5 percent. When looking at the earnings report, the thing that sticks out is the EPS of $8.67 that just missed the estimate of $8.75. The EPS bodes well for Apple.
There was a rally in stock markets across the globe with the imminent earnings report release of the largest company on this planet by market capitalization. But the lackluster earnings reports from tech stocks have made investors nervous as we head into a tightly contested U.S. presidential election on November 4.
By contrast, Apple has done a pretty good job as demonstrated by its earnings report.
Apple's tablet market growth
The tablet market that was pioneered by Apple is a highly segmented market. Apple was able to grow really fast in this new tech market and early challenges by competitors Research in Motion Limited (NASDAQ: RIMM) and Hewlett-Packard Co. (NASDAQ: HPQ) resulted in total failure.
However, other competitors sensing a new way of winning the tablet war have strategically taken market share away from Apple. Amazon (NASDAQ: AMZN) with its Amazon Kindle is a tablet that is great for shopping and reading. The Microsoft Surface has provided consumers with a tablet that is as close to a laptop as possible.
Google (NASDAQ: GOOG) has outdone Microsoft (NASDAQ: MSFT) with its 7" tablet that appeals to kids and offers a lower cost version of Apple's iPad.