Apple forecast tops estimates on expectations consumers will snap up iPhones, wearable devices
Apple shares rose 2.4 percent in extended trading on Tuesday, moving it closer to becoming the first U.S. company with $1 trillion in market value.
Apple projected sales that beat analysts’ estimates, suggesting consumers continue to snap up the company’s high-end iPhones, digital services and wearable devices like AirPods and the Apple Watch.
The Cupertino, California-based technology giant expects fiscal fourth-quarter revenue to be between US$60 billion and US$62 billion. Analysts were looking for US$59.4 billion, according to data compiled by Bloomberg.
Apple shares rose 2.4 per cent in extended trading on Tuesday. The stock closed at US$190.29 in New York and has gained 12 per cent this year, moving Apple closer to becoming the first US company with US$1 trillion in market value.
More than a decade after its debut, the iPhone is still Apple’s most-important product, accounting for about 60 per cent of revenue. While unit sales have slowed recently, the company is building digital services and a suite of other gadgets around the device. Those newer businesses, along with higher iPhone prices, have supported revenue growth.
Apple’s fiscal fourth-quarter outlook is closely watched because this is usually the period when the company unveils new iPhones. The company is expected to launch three new phones later this year. That’s raised Wall Street expectations for more sales and profit.
The results “were driven by continued strong sales of iPhone, Services and Wearables, and we are very excited about the products and services in our pipeline", Tim Cook, Apple’s chief executive, said in a statement.