Four ETFs To Play Apple’s $20 Billion Revenue Quarter

Once again, technology giant Apple (AAPL) crushed upwardly revised guidance for the company’s fiscal 4th quarter 2010 reporting an all-time record in quarterly revenues and earnings pushing the PowerShares QQQ (QQQQ), the iShares Dow Jones US Technology ETF (IYW), the Technology Select Sector SPDR (XLK) and the Vanguard Information Technology ETF (VGT) higher.

Apple boasted quarterly revenues of $20.34 billion and earnings of $4.31 billion, while witnessing earnings per share to reach $4.64, smoking analyst expectations by more than 13%.  To put the Cupertino, California-based revenue numbers into perspective, analysts expect revenue by search engine giant Google (GOOG) to reach $21.6 billion for all of 2010. 

These revenue numbers were primarily driven by a huge increase in iPhone sales, a jump in Mac sales and increases in iPad sales.  The ever-so-versatile iPhone witnessed sales rise by a whopping 91 percent unit growth over the same quarter a year ago, while the Mac computer line saw sales jump 28 percent and the iPad sold nearly 1 million more units sold than in Apple’s June quarter.   

Furthermore, Apple provided guidance for its December quarter with an EPS figure of $4.80 and $23 billion in revenues.  However, it is highly likely that the US’s second largest company by market share will surpass these numbers with the Christmas season approaching and Apple’s history for under promising and over delivering. 

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, three ETFs to play Apple include:

  • PowerShares QQQ (QQQQ), which allocates 19.01% of its assets to Apple.
  • iShares Dow Jones US Technology (IYW), which boasts Apple as its top holding, accounting for 12.95% of its assets
  • Technology Select Sector SPDR (XLK), which allocates 11.7% of its assets to Apple.
  • Vanguard Information Technology ETF (VGT), which allocates 10.27% of its assets to Apple.

Disclosure: No Positions

Categories: ETFs, Recent Articles

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