Sales Grow as Apple Preps iPhone 8


Apple Inc reported a 7.2 percent rise in quarterly revenue on Tuesday, buoyed by better-than-expected sales of its iPhones ahead of the smartphone's 10th-anniversary edition launch later this year.

Apple said it sold 11.4 million iPads in the quarter, a 15% increase on the same period previous year.

"Apple's quarterly results and outlook will be less important this week as investors are focused on the iPhone 8 this fall", Brian White, an analyst at Drexel Hamilton, wrote in a client note. Growth in iPhone revenues accelerated to 3 percent to Dollars 24.85 billion, compared to only 1 percent annual growth in the previous quarter.

The company sold 11.4 million iPads, up 14.8%. And despite iPhone sales accounting for a majority of Apple's revenues, total unit sales have not consistently grown recently.

Market analysts had predicted revenue of around $44.95bn (£34bn).

An Apple iPhone 7 can be seen in this picture taken in Bordeaux, France, Feb. 1, 2017. More expensive models likely sold well because revenue rose even faster, increasing 7%.

Speaking on a conference call to discuss Apple's results, Chief Executive Tim Cook called the company's iPhone sales, "impressive, especially at the high end", and said the iPhone 7, released past year, was the best-selling iPhone during the quarter.

After months of talk about Apple (AAPL) possibly facing production delays in its next model of the iPhone, delays analysts were still contemplating today, in advance of the company's fiscal Q3 report, it now turns out those fears may have been overblown. The Cupertino tech giant revealed that it had sold over 41 million iPhones, and while that is impressive, it is nothing compared to the statistic that the company's CEO, Tim Cook reveals later on.

In an interview with the New York Times, Chief Financial Officer Luca Maestri said Apple saw increases in sales and revenue in every product category, including iPads, which had been struggling.

The news was enough to send shares in the world's most valuable company up close to 6% in after-hours trading - to $159 a share - adding close to $40bn to the value of the company.

But the big surprise was the iPad.

And Apple's Services department - App Store and Apple Music, mostly - had revenues of more than $7.2bn in this last quarter.

Apple said it has now more than $260 billion in cash and short term investments.