Tech giant Apple Inc on Tuesday released strong third quarter earning with record high shares thanks to some great iPhone sales. The stock of Apple topped to a record high at $159.10 thanks to some record breaking iPhone sales, revenue and earnings per share. The stock price movement of Apple Inc is expected to boost the Dow Jones Industrial Average over the 22,000 mark till Wednesday. Amazingly Apple has also hit the milestone mark of selling 1.2 billion iPhones.
The April-June quarter is much better than the expected results as the market traditionally remains soft for the company during this period. The reason for this slump in sale every year is because the company generally releases new models in September. But this was not the story this year as buyers have not held back in buying the iPhones. Not just the iPhones even the iPad and Apple Watch sales have shown significant strength in the last quarter. The newest iPhone that will be launched in September will have high-resolution OLED display, wireless charging, and better touchscreen controls. The price, however, is expected to touch the whopping $1,000 plus mark. The company expects to make a total revenue in excess of $50 billion for the current fourth quarter. This rise in revenue is aided by the scheduled launches of company’s latest devices includes iPhones, iPads, and MacBooks.
According to reports released by the company, the iPhone sales have risen to almost 1.6 percent that accounts for about 41.03 million in the third quarter that ended July 1. Apple Inc’s net income rose to $8.72 billion, or $1.67 per share, from $7.80 billion, or $1.42 per share, in the year 2016. The company had expected to make $44.89 billion in the quarter but instead made $45.41 billion. The reason for such significant rise in revenue is thanks to the response in emerging markets like China which saw a growth of 18 percent. The sale of Apple products has been on the rise both in mainland China as well as other territories. The sales of iPhones, iPads, and MacBooks have been on the rise in mainland China, Taiwan, Hong Kong and Chinese Taipei. Taking specifically about Hong Kong, the rise has not been that meteoric due to effects of the U.S. dollar on Hong Kong’s economy.
To make its presence even more strongly in China, Apple CEO Tim Cook has directed the company to remove the VPN apps from its App Store in China. This is a major step by the company to abide by Chinese law makers and woo the Chinese government internet restrictions. The company looks to build the foundation of a strong and long standing association with the markets in South East Asia. The iPad sales alone account for $4.9 billion revenue which is almost $1 billion more than what the Wall Street expected. The App Store and other digital services of the company saw a jump of 21.6 percent from previous year. Walmart Stores Inc has hinted to buy 19,000 iPads to train its 225,000 employees. Apple is also planning on increasing the production of AirPods, its wireless headphones.