Apple Beat Third Quarter Expectations, as Phone Sales Barely Grew

Apple's fourth-quarter forecast will give clues to when the new iPhones will debut say

The Company posted quarterly revenue of $53.3 billion, an increase of 17 percent from the year-ago quarter, and quarterly earnings per diluted share of $2.34, up 40 percent.

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. That was due to a 20% rise in the Average Selling Price for the iPhone, to $724. Research firm IDC says that the iPhone is growing faster than the global smartphone market, according to Apple.

Shares of the world's most valuable technology company jumped 3.9 per cent, in after-hours trade, to $US197.69 (at 5:25pm, local time). The category includes AirPods headphones, the Apple Watch, Apple TV, and the HomePod.

The Cupertino, California-based technology giant expects fiscal fourth-quarter revenue between US$60 billion and US$62 billion.

To become the first $1 trillion company (and beat Amazon to the title), Apple's stock price needs to cross $203, which is 3% above its its current price, notes 9to5mac. In a note ahead of earnings, Andy Hargreaves of KeyBanc Capital Markets said that the "the risk of a direct impact from trade conflicts or increased nationalism among foreign consumers that damages global iPhone demand" might offset potential gains for Apple.

Shares of the company are up 13.44% since the beginning of 2018.

The world's largest public company sold fewer of its pricier iPhones than analysts had expected - 41.3 million units, below expectations of 41.8 million - but third-quarter revenue of $53.3 billion was higher than forecasts of $52.3 billion.

Amazon's profit surpasses $2bn after boost from cloud and Prime
During this year's Prime Day, Amazon said the July event saw Prime members purchase more than 100 million products. Shoppers purchaed more than five million toys, beauty products, PCs, apparel items and kitchen products.

While the rest of the tech industry's earnings are in a slump, Apple just posted its biggest Q3 earnings report ever.

The firm said its £999 iPhone X - launched previous year - remained its most popular iPhone model in the quarter and had driven the higher selling prices. The company's net income for the quarter was $11.52 billion compared to $8.72 billion a year ago.

Apple Chief Financial Officer Luca Maestri told Reuters that customers were buying costlier models and the US$999 iPhone X was the quarter's best seller.

iPhone shipments totaled 41.3 million, or an increase of 1% on the year.

"We are not able to catch up to demand yet and continue to add capacity for the AirPods", Maestri said. Revenue from services was up 31% and revenue from other products was up 37%. Cook said revenues from paid subscriptions of Apple and third parties had shown a 60 per cent year on year growth and was now over $300 million.

Analysts have learnt to look past Apple's third-quarter earnings to avoid any disappointment as consumers await the next iPhone upgrade, which is expected in September.

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