Apple sees share price increase on the back of better-than-expected results
Apple has posted quarterly revenue of $42.4 billion and profits of $7.8 billion, continuing its slide for a second successive quarter. However, the company’s numbers beat Wall Street expectations, leading to a surge in its stock price.
The figures, for its third financial quarter ending 25 June, represent a fall of 15% in revenue, largely driven by continued weak iPhone sales. iPhone unit sales for the quarter fell 15% year on year to 40.4 million. However, this number exceeded analyst expectations, which averaged 39.9 million.
This was driven largely by higher-than-expected sales of the iPhone SE, the smaller version of its flagship device that was launched in March. According to Apple chief financial officer Luca Maestri, the company could not fulfill demand for the smaller iPhone throughout the quarter.
The company’s biggest falls came in China, where revenue dropped by 33% year on year, and 29% compared to its previous quarter. However, China still accounts for more than 20% of overall company revenue.
One surprise was the iPad, which saw revenue grow for the first time in ten quarters. The company reported revenue for iPad of $4.9 billion, up from $4.5 billion a year ago, lifted by the more expensive iPad Pro. However, unit sales fell for a tenth successive quarter, down 9% to 9.95 million.
The company’s stock surged by 5.9% in after-hours trading, driven by the better-than-expected results.
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