Apple reports strong profits, boosted by rising iPhone sales, Latest Business News - The New Paper

Apple reports strong profits, boosted by rising iPhone sales

This article is more than 12 months old

Apple on Tuesday reported sales and profits for the holiday shopping quarter above Wall Street expectations, thanks to rising iPhone sales for the first time in a year and soaring demand for add-ons such as AirPods wireless headphones.

Apple posted US$91.8 billion (S$124.9 billion) in revenue for the quarter ended Dec 28, compared with analyst estimates of US$88.5 billion, according to IBES data from Refinitiv.

Apple reported earnings per share of US$4.99, compared with analyst estimates of US$4.55 per share.

The company forecast US$63 billion to US$67 billion in revenue for the quarter ending in March, ahead of estimates of US$62.4 billion, showing it believes that its phones and other devices such as AirPods wireless headphones will continue to sell well during what is often a slow time of the year.

Apple has made a push into paid services, rolling out a credit card with Goldman Sachs and subscription gaming and television services last year.

Services revenue was US$12.7 billion, below analyst estimates of US$13 billion and up from US$10.9 billion the year before.

"Services are important but the trajectory is heading on target. I feel they have made good progress on that front," said Mr Hal Eddins, chief economist for Apple shareholder Capital Investment Counsel.

Chief executive Tim Cook said the company used a wider-than-normal prediction range because of the uncertainty created by the coronavirus outbreak in China. Apple has shut one store in China and reduced hours at others because of lower foot traffic. - REUTERS