Apple boosted by selling more expensive iPhones

Apple’s earnings impressed and it hinted at a big September iPhone launch

By Redacción MNN Wednesday, August 1, 2018 comments

Typically, the three months ending in June are Apple’s slowest in terms of iPhone sales and revenue. This year, though, Apple posted the strongest third quarter in company history, beating analyst expectations for earnings per share and revenue.

The beat drove the stock up over 3% in extended trading.

But the average iPhone selling price hit $724, well above the expected $694.

The firm said its $999 iPhone X – launched last year – remained its most popular iPhone model in the quarter and had driven the higher sales price.

Strong revenue growth of 31% from Apple’s services business, which includes the App store, Apple Music and Apple Pay, also boosted its performance.

The services business is on track for more than $14bn in revenue in 2020, chief executive Tim Cook said.

“We couldn’t be happier with how things are going,” he said.

Overall the tech giant’s revenue jumped 17% year-on-year to a quarterly record of $53.3bn (£40.6bn), with every region except Japan reporting double digit growth.

Via The Week

Profits rose to $11.5bn, up 32% compared to the same period in 2017.

The gains brought Apple, already the world’s most valuable company, one step closer to a market value of $1 trillion.

Apple also said that it expected revenue next quarter to be between $60 billion and $62 billion, ahead of Wall Street expectations, which at its midpoint would be a 15% year-over-year increase. The larger-than-expected figure is a strong hint that Apple will introduce a new iPhone in September.