Apple earnings beat quarterly expectations, wearables up 60% on last year

Apple earnings beat expectations with revenue jumping 17% year-on-year to a best June quarter ever. Once again, wearables performed well.

Essential reading: Top fitness trackers and health gadgets

Overall revenue totalled $53.3bn during the three month period, the fourth consecutive quarter of double-digit growth. Every region except Japan reported a double-digit increase between March and June. Profits rose to $11.5bn, up 32% on the same period in 2017.

This is typically a lean quarter as most of the exciting product launches are in September, but earnings were boosted by more expensive iPhones. The company sold 41.3 million iPhones in the June quarter. While this was only 1% higher than last year the selling price averaged $724, above expectations which put it at $693.

“We’re thrilled to report Apple’s best June quarter ever, and our fourth consecutive quarter of double-digit revenue growth,” Apple CEO Tim Cook said in a press release.

“Our Q3 results were driven by continued strong sales of iPhone, Services and Wearables, and we are very excited about the products and services in our pipeline.”

The quarter once again saw outstanding results in wearables, which comprises Apple Watch, AirPods, and Beats. The category as a whole was up over 60% year-over-year, with revenue exceeding $10 billion. Apple Watch delivered record June quarter performance with growth in the mid 40% range.

Apple’s shares jumped 3% in after-hours trading. The Cupertino outfit is now very close now to becoming the first $1 trillion company. Its stock price needs to go over $203, which is only another 3% above its its current price.

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