Apple Inc. (NASDAQ:AAPL) rose 4.29 percent this week, from Thursday, July 17, to Thursday, July 24, beating all three major market indexes — the Dow rose 0.63 percent, Nasdaq rose 2.49 percent, and the S&P 500 rose 1.52 percent. Most of AAPL’s rise for the week can be attributed to a moderately positive reaction to the earnings report.
Third-Quarter Earnings Report
The big news this week is that Apple reported third-quarter earnings on Tuesday. The report contained both good and bad news. Earnings per share rose 20 percent, beating analyst expectations. Revenue, on the other hand, rose only 6 percent, which was below expectations. China was a bright spot in the revenue picture, rising 28 percent.
iPhone sales were up and were especially strong in the emerging economies of China, Brazil, Russia, and India. Mac sales rose 18 percent and beat expectations, with the MacBook Air selling especially well. iPad sales fared worse, both falling and failing to meet analyst expectations.
Overall, reaction to the earnings report was that it was nothing earthshaking one way or the other, and that the crucial news for Apple this year will be how well the iPhone 6 and the iWatch — along with whatever else Apple may have up its sleeve — will sell when they are released in the fall.
Get In On the New OS Beta Test
Apple is now giving 1 million users the chance to beta test its new desktop operating system, called OS X Yosemite, which will officially debut in the fall. Last time Apple gave users the chance to beta test an operating system, 14 years ago, it charged $29.95 for the privilege. This time, it’s free. If you’d like to sign up, you can do so here: OS X Beta Program
Employees Sue Apple
A class action suit was filed against Apple, claiming the company violated California labor laws by not providing sufficient employee break and lunch time.