Apple Forecast Tops Analysts' Estimates on New IPhones, Services

01 August, 2018, 08:59 | Author: Lora Ball
  • Apple could become the world's first trillion dollar company today

Apple sold 41.3 million iPhones in the quarter that ended June 30, just shy of the 42 million figure anticipated by analysts.

It also reported earnings per share of $2.34, beating analyst expectations of $2.18.

If you had any lingering doubt about what's driving Apple's iPhone business, let the company settle that for you: these days Apple is all about the iPhone X.

Shares rose 3.4 per cent to US$196.80 in after-hours trade.

Apple sold 11.5 million units of iPad during the quarter, a 5 percent year-over-year decline in revenue totalling $4.7 billion.

The company said it expects fourth-quarter revenue of between $60bn (£45.7bn) and $62bn (£47.2bn).

The average iPhone selling price hit US$724, beating analyst expectations of US$694, according to data from FactSet.

In its fiscal third quarter, Apple declared a cash dividend of 73 cents per share and repurchased about $20 billion in common stock.

While Apple missed estimates on iPhone sales, services brought in a surprising $9.5 billion in revenue, gaining 31% over the year-earlier quarter.

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Apple is ever-so-close to becoming the first USA company worth more than $1 trillion: The company closed in on the magic number Tuesday in after-hours trading after posting better-than-expected results for its fiscal third quarter, which ended June 30.

For the current quarter ending in September, Apple said it expects revenue of $60 billion to $62 billion.

But Apple is reportedly betting big on the design and features it introduced with the iPhone X. Rumors suggest that all three phones Apple is working on for the fall will mimic the iPhone X's design and adapt features like Animoji and Face ID unlocking.

Asked about Apple's opinion on potential trade conflicts between the United States and other nations, Cook was noncommittal.

Apple (NASDAQ:AAPL) posted the strongest third quarter in the company's history since it managed to beat analyst expectations for earnings per share and revenue.

"Our Q3 results were driven by continued strong sales of iPhone, Services and Wearables", chief executive Tim Cook said in a statement. Higher iPhone average selling prices, increased services revenue, and unit sales growth for the Apple Watch should drive the expansion, analysts say.

All those iPhone sales help Apple in another way - services like Apple Music, the App Store and elsewhere are booming.

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. Analysts surveyed by Zacks had expected revenue of United States dollars 58.59 billion. Along with various online TV, news and publishing, gaming and cloud-hosting services, Apple is targeting $50bn in annual services revenues by 2020.

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