Investors in Apple (AAPL) were pleasantly surprised by Apple’s earning report released Tuesday, which crushed expectations and the 3 ETFs with the largest exposure to Apple are seeing the results.
Apple’s forecast worried Wall Street as analysts panicked when several iPhone X component suppliers gave cautionary warnings over high-end smartphone demand. The supply chain warnings spurred Morgan Stanley to lower its June quarter iPhone estimate to 34 million from 40.5 million, suggesting a lack of iPhone demand.
However, Apple came in killin’ it.
According to Market Watch, “Apple, +4.42% posted 21% revenue growth in the Greater China region for the fiscal second quarter, its best year-over-year increase in 10 quarters. The company didn’t break out iPhone sales by region, but Apple posted a blowout quarter in terms of China revenue and a passable quarter in terms of iPhone revenue, and Chief Executive Tim Cook suggested that the iPhone had a banner quarter in the world’s most populous country.”
“The iPhone obviously had to do extremely well to get a 21% number,” Cook said on the company’s earnings call. Cook also said that the iPhone X was the top-selling phone in China.
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3 ETFs with Largest Exposure to Apple All Up
Let’s take a look at how ETFs with exposure to Apple are reacting according to Yahoo Finance at 12:30 p.m. Eastern time.
The iShares U.S. Technology ETF Technology Equities (IYW) with the largest holding in Apple at 0.44% was up 0.03% while the Technology Select Sector SPDR Fund (XLK) with a 0.13% holding of Apple, the largest tech-related ETF, was up 0.25%. Vanguard Information Technology ETF Technology Equities (VGT) with a 0.10% holding of Apple was up .35%.
Although Apple hasn’t had any crazy tech innovations for awhile, they seem to be happy keeping it simple.
And the market is rewarding them.