Apple surprises Wall Street with record-breaking Q3 profits

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

Apple's Market Value Is Approaching A Trillion Dollars: Report

Shares of Apple climbed as much as 2.6% in after-hours trading Tuesday following the tech giant's earnings report that topped Wall Street's expectations. Its mobile unit reported a 22 percent drop in sales revenue to $20.2 billion from the same time past year. Cook said that the more expensive iPhone X was once again the most popular iPhone model this quarter.

Apple is on the cusp of becoming the world's first trillion-dollar company after smashing Wall Street forecasts with a leap in profits.

Analysts were eager for news from the California-based company about how the company is riding out trade turbulence between the U.S. and China.

"We're thrilled to report Apple's best June quarter ever, and our fourth consecutive quarter of double-digit revenue growth", said Tim Cook, Apple's CEO. This resulted in the average selling price of iPhone reached $724, a sizable bump from a year ago. 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.

The figures show that Apple sold around 41.3m iPhones during the quarter, little changed from the 41m it sold in the same period a year ago, as consumers shrugged off higher prices for Apple's flagship iPhone X model. There are already rumors of three new models this fall, though the company is known to be reticent about upcoming releases.

Apple reported record services revenue of US$9.55 billion, up 31 per cent from a year earlier.

Apple's best-selling products do not yet face duties stemming from the US-China trade disputes, but US President Donald Trump has threatened hundreds of billions of dollars in further tariffs on product categories not yet been enumerated. The category includes the App Store, Apple Music, iCloud storage and Apple Pay. Apple has also hit what Cook called a pocket of success with the Apple Watch, though the company doesn't break down smartwatch revenue.

For the current quarter ending in September, Apple said it expects revenue in the range of $60 billion to $62 billion - also better than analysts had expected. But Apple and Samsung are also eyeing other areas of their businesses for growth.

Apple, which makes about 56 percent of its revenue from the iPhone, has had to deal with slowing sales growth for its biggest product.

After the markets closed in NY on Tuesday, the Cupertino, California-based iPhone giant reported a $11.5bn profit for the three months ending in June, up 32% from the same period a year ago.

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