Business Technology

Sunday 18 March 2018

Apple results beat expectations as iPhone sales soar

Tim Cook, chief executive officer of Apple Inc.
Tim Cook, chief executive officer of Apple Inc.

Katherine Rushton

Apple investors breathed a sigh of relief today, after company’s third quarter results beat analyst expectations and suggested that its iPhone may not have lost its allure just yet.

The Cupertino technology giant notched up $35.3bn of sales in the three months to June 29, compared to $35bn in the same period the previous year and $200m ahead of forecasts. Net profit stood at $6.9bn, down from $8.8bn last year.

The figures mark a slowdown for Apple, but shares in the company jumped more than 5pc in after-hours trading amid relief that the deceleration was not more sudden.

Less than a year ago, the company was the biggest listed business in the world, with a share price that briefly passed the $700 mark. On Tuesday, its share price closed down $7.32 at $418.99 in New York, continuing a steady decline in the value of the company over the last few months.

Its stock has fallen amid fears that the company has lost the innovative drive that for a few years appeared to give Apple the Midas touch. The company transformed the music market with its iPod player, and then repeated that trick with the iPhone and the iPad, which revolutionised the markets for smartphones and tablets respectively.

However, the company’s third quarter results showed that there is still considerable mileage to be had in the existing line up. Sales if its iPad devices fell, but company sold 5m more iPhones than expected.

"We are especially proud of our record June quarter iPhone sales of over 31 million and the strong growth in revenue from iTunes, Software and Services," said Tim Cook, Apple's chief executive. "We are really excited about the upcoming releases of iOS 7 and OS X Mavericks, and we are laser-focused and working hard on some amazing new products that we will introduce in the fall and across 2014."

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