Sales of Macs may have dipped, but the iPhone has more than made up for it.
There are two lessons here for investors. First, despite a confidence-sapping lack of communication about the health of co-founder and chief executive Steve Jobs during his recent mediacal leave, there can no longer be any doubt about the strength of Apple’s management back bench. Second, recession or no, consumers continue to reward innovation. On 26 times forward earnings, Apple trades at a rich premium to other hardware makers.
Read the full Lex note here.
Related links:
Apple profits soar on strong iPhone sales – FT
Apple crushes consensus, Yahoo middling – FT Alphaville