Apple Flirts With $1 Trillion Market Cap After Strong Earnings Report

Apple Flirts With $1 Trillion Market Cap After Strong Earnings Report

The higher revenue can be attributed to not just the increased iPhone sales, but also the fact that the average selling price of an iPhone is much higher than what it was a year ago.

Apple's enormous cash pile actually shrank by $23 billion during the quarter, giving the company $243 billion in cash and liquid assets.

Apple is closing in on a $1 trillion market cap following a strong third-quarter earnings report that exceeded Wall Street's projections.

Another bright point for Appleーrevenues from its services business, which includes its App Store, Apple Music, and iCloud.

Shares in the Californian tech giant jumped more than 2% in after hours trading in NY. Apple said iPhone shipments edged about 1% higher.

Analysts are predicting iPhone sales to be up slightly on past year, but revenue to rise further thanks to the higher price of the iPhone X, which Apple said, when announcing its last set of results, was its best-selling phone. Cook said that the more expensive iPhone X was once again the most popular iPhone model this quarter. Apple sold 11.6 million iPads, 41.3 million iPhones, and 3.7 million Macs during the quarter.

Apple's revenue guidance for Q3 2018 fell between $51.5 billion and $53.5 billion, with gross margin estimated to be between 38% and 38.5%.

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

The Cupertino, California-based company said it had net income of $2.34 per share in its fiscal third quarter ended June 30.

Mr Maestri said sales from Apple Care, the company's warranty offering, were up 27 per cent versus a year ago, though the company did not disclose a dollar figure for sales.

Apple also forecast revenue above expectations for the fall, when it typically launches new iPhone models, reassuring a nervous tech sector that saw sell-offs last week in Facebook Inc, Twitter Inc and Netflix Inc on concerns about their future growth.

Another category potentially affected by tariffs is the Apple Watch, which is one of Apple's growth drivers. The results surpassed Wall Street expectations of $2.17 per share, the Associated Press reported. Revenue from Services was up to $9.54 billion, an increase of 31% year-over-year.

USA markets recovered overnight, led by gains in industrial stocks, following reports that the United States and China were renewing their trade negotiations to prevent the trade war from escalating. It has also soothed investor concerns with a $US100 billion stock buyback program and promises of growth from services such as streaming music and video, where Apple faces competition from rivals including Spotify and Netflix.

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