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Apple Tops Earnings, BlackBerry's New Phone, Amazon Prime Heads To India - Eye On Tech

Summary

Apple shares trade higher after topping earnings per share and revenue expectations. BlackBerry introduces its new smartphone, the DTEK50.

Amazon takes Prime to India and gets special permission from the U.K. government for its drone testing.

Mobileye shares drop despite beating on earnings after the company said it will no longer work with Tesla. Separately, the automaker is accelerating the construction of its Gigafactory.

Apple Reports Earnings, Climbs Higher as a Result

Apple (NASDAQ:AAPL) reported earnings after the close on Tuesday, and what do you know, the old behemoth was able to beat expectations. Earnings per share of $1.42 came in 4 cents per share above expectations, while revenues of $42.4 billion - which were down over 14% YOY - topped expectations by more than $300 million.

iPhone sales of 40.4 million came in ahead of analysts' expectations of 39.9 million units.

Of course, the results overall were not spectacular. It's just the power of reduced expectations. Analysts were looking for severe deceleration in the company's year-over-year results. Case in point: revenues from China fell roughly 30% sequentially (part of that could be because of Huawei's continued market share gain).

That's not really a knock on Apple, though. While the results are down sharply, it shouldn't be too surprising anymore. After the stock went on a sizable rally alongside a massive upgrade cycle from the iPhone 6, Apple had comps that simply weren't realistic - especially in an "S" year. The hope now, though, is that after a tough year of comps, the company's iPhone 7 will be able to put up strong upgrade numbers.

The stock is still down badly from its highs made in the first half of 2015. Despite the ~5% after-hours rally, shares are still down more than 20% from the peak.

Overall, investors were expecting the worst this quarter and already looking ahead to the new iPhone launch in September and to holiday sales in Q4. When results came back as not-so-horrible, the situation became not as bad as previously thought. Thus, the after-hours gain.

All of that could change on Tuesday night's conference call, but for now, it perhaps looks like a bottom could be in for Apple.

BlackBerry Releases Its New Phone

Last week, we looked at the possibility that BlackBerry (NASDAQ:BBRY) would unveil its new smartphone on Tuesday, which it has indeed done. We also questioned how much it would really matter, given that "the company hasn't produced positive net income in the last four years, while...


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