Apple has said its profit had jumped more than 30 per cent to USD 11.5 billion in the recently ended quarter, besting market expectations despite selling fewer iPhones than analysts projected.
The news boosted shares in the tech giant in after-hours trading, putting it ever closer to a history-making, trillion-dollar market value, even as China's Huawei knocked Apple off second spot in a tightening global smartphone market.
Apple's revenue in the fiscal third quarter soared 17 per cent to USD 53.3 billion from the same period a year earlier on the back of sales of pricier iPhones, online services and wearable devices.
"We're thrilled to report Apple's best June quarter ever, and our fourth consecutive quarter of double-digit revenue growth," chief executive Tim Cook said in the earnings release yesterday.
Apple sold 41.3 million iPhones in the quarter that ended June 30, just shy of the 42 million figure anticipated by analysts.
Shares in the Silicon Valley-based technology titan rose 4.03 per cent to USD 197.95 in after-hours trade that followed release of the earnings figures.
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"Apple gave the Street and tech investors finally some good news" beating earnings forecasts and predicting the current quarter will be strong, GBH insights head of technology research Daniel Ives said in a note to investors.
To hit the trillion-dollar market value, Apple shares would have to climb about five percent more.
Analysts were eager for news about how the company is riding out trade turbulence between the US and China.
President Donald Trump's trade wars include 25 per cent US tariffs on USD 34 billion in Chinese goods, with more on the way, and steep tariffs on steel and aluminum, which provoked Beijing and others to hit back with import duties on US goods.
Cook said that Apple products have not so far been directly affected, and that the company is evaluating the latest Trump move currently in a public comment phase.
"Our view on tariffs is they show up as a tax on the consumer and wind up resulting in lower economic growth; and sometimes can bring about significant risk of unintended consequence," Cook said while fielding questions on an earnings call.
"All of this said, we are optimistic that this will get sorted out. There is an inescapable mutuality with the US and China which serves as a magnet bringing them together: each can only prosper if the other does."
"If you look at the top of our line together, they are growing very nicely" Cook said. "IPhone X shows that when you deliver a great innovative product there are enough people out there that would like that and it can be a very good business."