Apple's pricey iPhone X, subscriptions deliver earnings beat

Apple could become the world's first trillion dollar company today

Apple just reported results for its April-through-June quarter today, and the company's burgeoning services business is once again the story of the day.

"The iPhone X shows that when you deliver great, innovative products, there's enough people that want that", Apple CEO Tim Cook told Wall Street analysts when asked about the health of the smartphone market. Apple has also hit what Cook called a pocket of success with the Apple Watch, though the company doesn't break down smartwatch revenue.

Shares in the Silicon Valley-based technology titan rose 3.96 per cent to US$197.83 in after-hours trade that followed release of the earnings figures, putting its market capitalisation at US$956 billion.

Apple said it sold 11.6 million iPads in the quarter, up from the 11.4 million in the year-ago period.

Apple moved 41.3 million iPhones in its third quarter, which was less than the 41.79 million Wall Street was expecting - but blew past the predicted $693.59 average selling price for a smartphone. The California-based giant's performance for this quarter is much better compared to the same period a year ago, where Apple posted a revenue of $45.4 billion, quarterly profit of $8.7 billion, or $1.67 EPS. More importantly, consumers kept buying more expensive iPhones this quarter, with the average sales price rising to $724, up from $606 past year. In a note ahead of earnings, Andy Hargreaves of KeyBanc Capital Markets said that the "the risk of a direct impact from trade conflicts or increased nationalism among foreign consumers that damages worldwide iPhone demand" might offset potential gains for Apple.

Apple's increasingly important Services segment saw revenue of $9.5 billion, up 31% versus $7.2 billion during the same quarter previous year. That's because the pricy iPhone X has been performing well; it has consistently been the best-selling iPhone since it launched last November.

Facebook's value falls $148 billion after Q2 earnings call
Facebook has been an omnipresent part of American news for what seems like all of 2018, and rarely with a positive connotation . Yet the company said it expects an operating profit between $1.4 billion and $2.4 billion, up from $347 million a year earlier.

Revenue rose 17 per cent to Dollars 53.27 billion, also exceeding Street forecasts for USD 52.37 billion.

In terms of consolidated numbers shared by the company, Apple sold 41.3 million iPhones during the fiscal third quarter ending June 30, 2018.

All those iPhone sales help Apple in another way - services like Apple Music, the App Store and elsewhere are booming. Analysts expected revenue of US$52.4 billion and earnings of US$2.18 a share.

At the moment, Apple is worth $935 billion.

Apple said it expects operating expenses of US$7.95 billion to US$8.05 billion in the fourth quarter, compared with analyst estimates of US$7.8 billion, according to Thomson Reuters I/B/E/S.

Apple said its gross profit margin will be 38 per cent to 38.5 per cent in the fiscal fourth quarter, versus analysts' estimates of 38.2 per cent.

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