Apple Reports Earnings Beat – Hits $1 Trillion Mark!!!
Dow 30 component Apple (AAPL) revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch and Apple TV. Apple’s four software platforms — iOS, macOS, watchOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to “leaving the world better than they found it.”
Apple saw strong results for its fiscal third quarter beating the estimated earnings per share of $2.18 with $2.34. Its quarterly report comes after a market rout for major tech stocks. Revenue was reported at $53.3 billion, up 17 percent year over year. Shares of Apple also rose 4 percent in extended trading, which lines up with the projections of the company having a strong upside for its third quarter.
41.3 million iPhones were shipped this quarter which is flat from the year-ago period, but the $724 ASP is a significant jump from the year-ago period, likely caused by the more expensive iPhone X which starts at $999.
The company also saw growth in other products with over 60% increase in its wearable products that include the Apple Watch, AirPods, and Beats headphones. Its “Other Products” category beat revenue estimates of $3.67 billion with a total of $3.74 billion.
Apple reported a 28% leap in services revenue from the year-ago quarter with $9.55 billion, which is the segment’s highest quarterly revenue to date. The record-breaking service revenue comes as a result of a one-time line item that totaled $236 million related to lawsuits. The App Store reported a boost in paid subscribers with a 50 percent year-over-year increase in cloud revenue.
Tim Cook, Apple CEO “We feel great about the momentum of our services business, and we’re on target to reach our goal of doubling our fiscal 2016 services revenue by 2020.”
Shares of Apple hit an all-time high today reaching $207.05 a share which moved its market cap value above the $1 trillion mark making it the first company in history to reach such heights in value.
Learn more about Apple and track its ongoing progress at Vista Partners Apple (AAPL) Coverage Page.
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