Apple earnings beat expectations as it sells pricer iPhones

Apple shares rise on pricey iPhones no tariff impact yet

The Cupertino, California-based technology giant is expected to announce fiscal third-quarter revenue of $52.3 billion, according to analyst estimates compiled by Bloomberg. Sales of the iPad tablet grew slightly to 11.6m while those of its Mac computers dropped to 3.7m.

Even though iPhone unit shipments inched up 1% to 41.3 million, revenue catapulted 20% to $29.9 billion because the $999 iPhone X was the top-selling brand, Apple CEO Tim Cook said in a conference call with analysts today.

Apple shrugged off lower-than-expected sales for the iPhone on Tuesday as shares rose sharply after market close, when investors got a glimpse of a far more important number: how the company projects sales to be next quarter.

The company's services business - which includes the App Store and Apple Music streaming service - has also been a good performer in recent quarters and another strong performance in the latest results could also help drive growth. In the last quarter, Apple's services made $9.5 billion, making it the second-largest business segment for the firm. Even more impressive was the growth in revenue from services such as Apple Music and iCloud, which grew by 31% compared to the past year.

With a total market value of more than $US900 billion, Apple is tickling at the title of world's first trillion-dollar company. Samsung's performance underscored mounting concerns that Apple, too, would be victimized by a saturated smartphone market.

The tech company posted $53.3 billion in third-quarter revenue, up 17 percent from the same quarter previous year.


But several of Apple's services do not face strong rivals.

Apple shares climbed 3.9 percent in extended trading, to $197.75, giving the tech titan a market cap just shy of $960 billion. Revenue and earnings per share were both up (and over analyst expectations), and stocks have seen a modest bounce as investors jump back on the hype train.

Apple's margins are facing pressure as it moves to put pricier components, such as OLED displays that show more vivid colours, into its products.

"We are not able to catch up to demand yet and continue to add capacity for the AirPods", Maestri said.

The company generated $53.3 billion in revenue during the quarter ending June 30, compared to $45.4 billion during the same quarter a year ago.

Finally, while Cook expressed opposition to new trade tariffs between the USA and China, noting how they're anti-consumer, he said that Apple is continuing to see double digit growth in China along with other major markets.

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