Apple delivered an exceptionally strong result for its December quarter as sales of its bigger screened iPhone 6 and iPhone 6 plus drove record revenue and earnings.
Craigs Investment Partners broker Chris Timms said the revenue and profit easily beat estimates and company guidance.
''The result proves Apple can still successfully launch a new product and convert into earnings growth. We eagerly await the launch of the Apple watch in April and believe Apple Pay also holds potential.''
However, iPhones would continue to be the primary revenue driver for Apple in the foreseeable future and Craigs saw near term growth in that product category as reflected in the current share price of $US115.31 ($NZ158.40), he said.
Apple Pay and Apple watch were the two new products offering significant potential.
While Apple Pay was still in its infancy, more than 750 United States banks had signed up and customer feedback had been positive and retailer uptake strong, Mr Timms said.
Apple Pay already accounted for $US2 out of every $US3 spent using contactless mobile phones across Visa, MasterCard and American Express in the US.
Implementation challenges remained and while Apple was not going to become universal anytime soon, the product continued to hold potential, he said.
Apple expects to ship the first Apple watch in April. It is Apple's first move into a new gadget category since the iPad in 2010.
''It has the potential to be a significant new revenue earner for Apple, as the wearables market grows, although it is unlikely to be the next iPhone,'' he said.
The degree of its uptake was also difficult to predict as its success depended to a large extent on the quality of the apps written for it. Buyers would also need an iPhone 5 or above to use the watch.
Mr Timms noted sales of Mac computers shone in a declining global PC market.
Sales increased 14% due to the popularity of the new iMac. The average selling price of Macs increased by $US58 from the fourth quarter of 2014, driving record revenue for the Mac segment of $US6.9 billion.
The growth was achieved despite the global personal computer market falling 3% in the quarter.
The other standout was the AppStore, where revenue grew 41%.
Apple expects
In the three months ended March:Revenue of $US52 billion to $US55 billion compared with $US45.6 billion in the previous corresponding period.
Gross margin of 38.5% to 39.5%.
The guidance implied earnings per share of about $US2.05 compared with $US1.66 a year ago.
Expiring hedges could mean the company is more exposed to foreign exchange volatility.
