Apple stock rises after hours on blockbuster earnings report

Apple stock rises after hours on blockbuster earnings report

Apple stock rises after hours on blockbuster earnings report

Apple, the maker of the iPhone X, exceeded Wall Street's expectations with its latest earnings, partly due to selling pricier mobile phones. This bucket - which accounts for app purchases, Apple Care and more - surged more than 30 percent year-over-year to $9.55 billion.

Shares in the Silicon Valley-based technology titan rose 3.96 percent to $197.83 in after-hours trade that followed release of the earnings figures. Both iPhones have adopted the notched display Apple introduced with last year's iPhone X. The 6.1-inch model, rumored to be the least expensive iPhone Apple is introducing this fall, has a single camera lens on the back, while the 6.5-inch iPhone features two cameras. Analysts expected revenue of US$52.4 billion and earnings of US$2.18 a share.

Shares of the company are up 13.44% since the beginning of 2018. The company is expected to launch three new phones later this year. The company sold 41.3 million units, below expectations of 41.8 million units.

"We're thrilled to report Apple's best June quarter ever, and our fourth consecutive quarter of double-digit revenue growth", Cook said.

Apple, meanwhile, has focused more on services such as the App Store and its entertainment businesses as growth drivers.

Apple sold 41.3 million iPhones in the fiscal third quarter, below expectations of 41.8 million units, but the average iPhone selling price hit $724, beating analyst expectations of $694, according to data from FactSet.

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At the moment, Apple is worth $935 billion.

Despite the beat, James Cordwell, an analyst from Atlantic Equities, said the high selling prices might cause investors some concern because "there's a limit to how much Apple can grow the iPhone franchise by pushing pricing". -China trade disputes, but President Donald Trump has threatened hundreds of billions of further tariffs whose product categories have not yet been enumerated. Apple has also hit what Cook called a pocket of success with the Apple Watch, though the company doesn't break down smartwatch revenue.

Gross margin for the quarter was 38.3 percent compared to 38.5 percent in the year-ago quarter, with worldwide sales accounting for 60 percent of revenue. The category includes AirPods headphones, the Apple Watch, Apple TV, and the HomePod.

The company's Other Products segment continued to see strong growth, with revenue up 37 per cent to US$3.7 billion.

IPad sales were also up slightly, to the tune of 11.55 million compared to 11.42 million during the same quarter a year ago. Services reached a record $9.55 billion, and is well on the way to a runrate of $14 billion per quarter by 2020, the company said.

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