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 has posted Q3 18 results, and the results won't be a disappointment to investors, with the Cupertino powerhouse squeezing another good quarter out of the iPhone, and gets a decent one out of the iPad.

That beat the $2.17 per share expected by 10 analysts surveyed by Zacks Investment Research.

About the only impediments holding Apple from $1 trillion are buybacks and dividends, which enhance the company's share price though doesn't necessarily enhance its overall market value.

Shares in the Silicon Valley-based technology titan rose 3.96 per cent to US$197.83 in after-hours trade that followed release of the earnings figures, putting its market capitalisation at US$956 billion. Analysts expected that Apple would sell around 42 million phones-the company sold only 41.3 million.

Apple moved 41.3 million iPhones in its third quarter, which was less than the 41.79 million Wall Street was expecting - but blew past the predicted $693.59 average selling price for a smartphone. Its mobile unit reported a 22 percent drop in sales revenue to $20.2 billion from the same time past year. On the same day Apple was announcing another strong quarter for its iPhone business, Samsung was conceding that sales of the Galaxy S9 and S9+ are slower than expected. Apple said iPhone shipments edged about 1% higher.

The company reported per-share earnings of $2.34 for the quarter, up 40% from the same time previous year and handily beating analysts' consensus estimates of $2.18.

Revenue from services - one of it's fastest-growing units that includes Apple Music and the App Store - climbed 31% over the same quarter in 2017, hitting $9.55 billion.

Some analysts were concerned there would be a drop off in demand for the company's highest-priced iPhone X, which sports a starting price tag of $999.

Apple also reported a 37 per cent increase, to United States dollars 3.7 billion, in the division for miscellaneous hardware, including Apple Watch and the HomePod smart speaker.

The iPhone maker posted the strongest fiscal third quarter results in its history - with $53.3 billion in revenue, easily besting the $52.3 billion analysts had forecast.

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

Cook told analysts that Apple is on track to meet a goal of doubling Services revenue by 2020.

Services revenue The company projects that it will bring in between $60 billion and $62 billion in revenue during Q4 2018.

Apple said the average selling price of the iPhone had risen to more than $US700 in the quarter, showing that each customer is paying more for the company's gadgets. Analysts surveyed by Zacks had expected revenue of Dollars 58.59 billion.

The biggest momentum for Apple continues to be "Services", which includes iCloud, Apple Music, and Apple Care.

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