Once again, technology giant Apple (AAPL) beat analyst expectations and continues to be the envy of the technology world. This outperformance is likely to provide support to the PowerShares QQQ (QQQ), the iShares Dow Jones US Technology ETF (IYW), the Technology Select Sector SPDR (XLK) and the Vanguard Information Technology ETF (VGT).
The Cupertino, California-based company boasted revenues of $24.7 billion, up 83 percent from $13.5 billion a year ago and $1.3 billion higher than what analysts expected. Furthermore, Apple reported net income for its second quarter of $5.99 billion, a 95 percent jump from the $3.07 billion it reported last year and roughly 19 percent higher than expected.
This outperformance was primarily driven by sales of both versions of the company iPad and record sales of the iPhone. Apple sold 4.7 million iPads in its second quarter and many technology analysts believe that this number was light due to the fact that the iPad 2 was launched two weeks before the end of the quarter and consumers likely held off purchasing of the original iPad to get their hands on the iPad 2. In and of itself, Apple has sold more than 19 million iPads through the latest quarter and is currently expanding its sales efforts of the tablet to 13 more countries, which is expected to further support sales.
As for the iPhone, Apple sold a record 18.65 million devices, smashing analyst expectations. Some suggest that this boost in sales was supported by the recent offering of iPhones on the Verizon (VZ) network. Other notable sale numbers include an increase by 28 percent in Mac computer sales from a year ago, which is important considering the overall PC market witnessed a contraction during the same period.
At the end of the day, Apple continues to outperform and offer products that have insatiable demand regardless of consumer sentiment and confidence about where the economy is going.
As mentioned above, four ETFs offering heavy Apple exposure include:
- PowerShares QQQ, which allocates 20.73% of its assets to Apple.
- iShares Dow Jones US Technology, which boasts Apple as its top holding, accounting for 13.99% of its assets
- Technology Select Sector SPDR, which allocates 12.33% of its assets to Apple.
- Vanguard Information Technology ETF, which allocates 11.18% of its assets to Apple.
Disclosure: No Positions