Apple Inc, the iconic US company known for its premium brand of products is about to make history; as it nears one trillion market capitalization.
The firm announced a 30 percent increase in profits for the second quarter of the year, sending its shares rising by over 4 percent. Apple Inc reported a profit of $11.5 billion, well above forecasts despite a fall in iPhones sold during the period.
This news boosted the tech giant’s shares in after- hours trading; taking its market capitalization closer to a trillion dollars, despite the tightening smartphone market; which has seen China’s Huawei knock Apple Inc off the number 2 position.
Apple Inc saw a 17 % rise in revenues for the fiscal third quarter to $53.3 billion from same period last year as a result of more expensive iPhones, online services and wearable devices.
“We’re thrilled to report Apple’s best June quarter ever, and our fourth consecutive quarter of double-digit revenue growth,” said Tim Cook, the company’s chief executive in the earnings release.
The company made sales of 41.3 million iPhones in the quarter, a little bit less than forecast of 42 million by analysts.
Its shares rose 4.03 percent to $197.95 in after hours trading following the earnings release and the shares need to climb about 5 percent more for its capitalization to hit a trillion dollars.
“Apple gave the Street and tech investors finally some good news beating earnings forecasts and predicting the current quarter will be strong” GBH insights head of technology research Daniel Ives said in a note to investors.
The tech giant will unveil new iPhone models in the fall according to reports and would most probably stick with its model of releasing upgraded versions ahead of year end holiday shopping season.
The fiscal third quarter sales of iPhones have usually been tame as customers historically buy in prior months or wait for new models to be unveiled in later months.
Apple Inc also disclosed that the average selling price of iPhones went up as buyers preferred top of range X and 8 models.
“If you look at the top of our line together, they are growing very nicely” Cook said.
“IPhone X shows that when you deliver a great innovative product there are enough people out there that would like that and it can be a very good business.”
However, along with the good news for Apple Inc came some little challenging one as latest figures revealed that China’s Huawei have taken over the second spot from Apple in the global smartphone market during the quarter.
Samsung, South Korean Electronics giant are still number one in the smartphone market selling 71.5 million handsets with Huawei at number two with sales of 54.2 million handsets, according to IDC Worldwide Quarterly Mobile Phone Tracker.
This is the first time since 2010 that Apple Inc wasn’t in the first or second position in the global smartphone market.
With sales of 41.3 million iPhones, Apple has now controls 12.1 percent of the global market; compared to 15.8 percent for Huawei and 20.9 percent for Samsung.