Apple blows past Wall Street expectations to post strong results as China revenue grows

Apple shook off some fears about waning iPhone sales, soaring past estimates for its fourth-quarter earnings and posting sales increases in every product category.

Analysts expected earnings of US$1.87 per share and revenue of US$50.7 billion, according to FactSet. The firm was also expected to sell 46 million iPhones, analysts said.

Apple exceeded all metrics, reporting it had sold 46.7 million iPhones, and made profit of US$2.07 per share on revenue of US$52.6 billion. Shares, which closed at US$168.11 per share, were up nearly 3 per cent after the report.

Apple also said it returned to revenue growth in China, bringing in US$9.8 billion versus US$8 billion a year ago. The company had doubled its revenue in India during the fiscal fourth quarter.

But the numbers that most Apple watchers were focused on were those outlining what the company expects to see for the next quarter. Analysts were looking for guidance from Apple that mirrors the questions playing out in many Apple fans’ minds across the country: iPhone X or iPhone 8?

The iPhone 8 and iPhone 8 Plus went on sale in October, boasting improvements to the camera and the addition of wireless charging. But retailers and analysts had reported slower than usual sales for a new iPhone model, which many attributed to the fact that Apple has a new, more premium model, of the iPhone set to hit stores on Friday. Pre-orders opened last week.