Apple Closes In on $1 Trillion Market Cap With Q3 Earnings Beat

Apple Closes In on $1 Trillion Market Cap With Q3 Earnings Beat

The results surpassed Wall Street expectations of $2.17 per share, the Associated Press reported. Prior to the earnings release, CNBC said that Apple could be spared the bloodbath due to its profitable hardware business, which online consumer companies like Facebook, Twitter, and Netflix lack.

Investors reacted enthusiastically, driving the stock up 5% in after-hours trading to $195.90 a share. Apple sold 11.6 million iPads, 41.3 million iPhones, and 3.7 million Macs during the quarter. Interestingly, there were no specific statements about the Indian market, where Apple has not had a great quarter as per local analysts, except for the comment in the earnings call that it was one of the markets were the Mac had shown double digit growth.

The company said it expects fourth-quarter revenue of between $60bn (£45.7bn) and $62bn (£47.2bn). 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 worldwide iPhone demand" might offset potential gains for Apple.

Apple's financial third quarter is traditionally quiet, coming in the slow summer months before the company's hotly anticipated refresh of the iPhone, the device that provides the lion's share of its revenues.

The Cupertino, Calif., company forecast revenue of $60 billion to $62 billion for its fiscal fourth quarter, which will include early sales of soon-to-be-announced phone models, beating the $59.6 billion analysts expected.

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

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At least 500 homes, businesses and other structures have been destroyed by the raging blaze, while 75 others have been damaged. More than 160 fire departments from California and around the country have been deployed to help quell the week-long blaze.

Apple's stock closed Tuesday at $190.29, with a market cap of $935.3 billion. Sales in that sector rose 31 percent to $9.5 billion.

He said the company has had a "stellar quarter in services" with an all-time high revenue of $9.5 billion which he attributed partly to the double-digit growth in active installed base. Apple says there are now 30,000 apps that offer subscriptions and Apple Music has become the leading music streaming service in markets like North America. In February, Apple said it expected revenue of between $51.5 billion and $53.5 billion for the quarter.

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.

In other words, don't expect Apple to back off from a product strategy that's helping the company to grow its bottom line.

There is also a sense that the days of soar-away sales are behind the mobile phone industry and investors are now more focused on Apple's services business - which includes Apple Music, iCloud and Apple Pay - for future growth. Thomson Reuters analysts expected $52.3 billion.

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