Apple is inching closer to becoming the first American company to have a valuation of $1 trillion after posting its third-quarter earnings for the financial year beating analyst expectations and bumping up the company’s stock price. The company’s stock amped up by around 2.5% after the report, after markets closed with a market cap of around $935 billion. Stocks needs to rise only 7% for the company to reach the $1 trillion mark now.
Revenue stands at $53.3 billion up by 17% YoY. Apple’s iPhones brings more than half (56%) of the company’s revenue, even though units sold increased by a mere 1% YoY. The growth from iPhones has predictably slowed down given that a slew of new smartphones launches is rumoured in the coming months. Apple also forecasted expected revenue for fiscal Q4 to be between $60-62 billion, which would amount to a 16-19% growth from last year. Analysts have estimated $59.6 billion in fourth-quarter revenue.
46% of Apple stores are now located outside the U.S. #AppleEarnings
— Lance Ulanoff (@LanceUlanoff) July 31, 2018
Wearables and Airpods revenue soar
Meanwhile, revenue burgeons in Apple services and third-party accessories including AirPods, Apple TV, Apple Watch, HomePod, and others. The division has grown by 37% YoY, it brought Apple $3.7 billion in revenue, up from $2.7 in the third-quarter last year. The Apple Watch is a big driver of that success; last quarter, the Wearables segment reached the size of a Fortune 300 company. Apple’s AirPods are also proving to be a commercial success. Apple’s Mac unit, which has been drawing complaints from consumers, reported a 9% drop in units sold.
Apple's "Other Products" revenue: $3.74B.
My expectation: $3.77B.
Results imply strong Apple Watch and AirPods sales.
— Neil Cybart (@neilcybart) July 31, 2018