Apple is close to making history with one trillion market value after announcing on Tuesday a 30 per cent increase in its profit for the second quarter.
It reported a profit of $11.5 billion, besting market expectations despite selling fewer iPhones than analysts projected.
The news boosted shares in the tech giant in after-hours trading, putting it ever closer to a history-making, trillion-dollar market value, even as China’s Huawei knocked Apple off second spot in a tightening global smartphone market.
Apple’s revenue in the fiscal third quarter soared 17 percent to $53.3 billion from the same period a year earlier on the back of sales of pricier 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,” chief executive Tim Cook said in the earnings release.
Apple sold 41.3 million iPhones in the quarter that ended June 30, just shy of the 42 million figure anticipated by analysts.
Shares in the Silicon Valley-based technology titan rose 4.03 percent to $197.95 in after-hours trade that followed release of the earnings figures.
To hit the trillion-dollar market value, Apple shares would have to climb about five percent more.
“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 company is expected to unveil new iPhone models in the fall, sticking with its practice of releasing upgraded models ahead of the year-end holiday shopping season.
Sales of iPhones in the fiscal third quarter have typically been tame as many fans have historically either bought handsets in prior months or end up waiting for new models in the months to come.
That said, the average selling price of iPhones jumped in the quarter as buyers opted for top-of-the-line X and 8 models, according to Apple.
“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.”
But the good news was slightly tempered after latest figures showed China-based Huawei took the second-place spot from Apple in a tightening global smartphone market during the second quarter of this year.
South Korean consumer electronics titan Samsung remained the top smartphone maker, shipping 71.5 million handsets, but Huawei moved into second position with shipments of 54.2 million, according to IDC Worldwide Quarterly Mobile Phone Tracker.
The 41.3 million iPhones shipped by Apple gave the company 12.1 percent of the global market compared to 20.9 percent for Samsung and 15.8 percent for Huawei.
It was the first time since early 2010 that Apple wasn’t in one of the top two spots in the smartphone market, according to IDC.