Investing.com – Innovative, transformative companies have a tendency to be under-estimated and misunderstood by Wall Street, and Apple may be an example.
Apple beat earnings expectations amid the periodic doom and gloom about its iPhone business.
“Slowly but surely, Apple is morphing into more than just an iPhone story,” wrote RBC Capital Markets in a post earnings note to clients, “and is displaying ability to sustain revenue growth irrespective of iPhone trajectory.”
Its services unit has been growing quickly since Tim Cook said his goal was to double the business by 2021.
In little more than a year, revenue from services–which includes the App Store, Apple Pay, iTunes, cloud computing and other lines of business–has jumped 28% to $9.20 billion.
Apple’s other products unit–which includes wearables like Apple Watch and Air Pods headphones as well as the new smart speaker HomePod–posted revenue of almost $4 billion.
Wall Street, however, may finally be catching on.
Apple shares (NASDAQ:) are up more than 14% in the past 12 months.
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