Shares of computer and smartphone maker Apple increased almost 5% in after-hours trading after it reported that earnings for the third quarter are better than estimates.
Apple reports strong iPhone sales
Apple produced $6.9 billion earnings for three months to June, due to good sales of its iPhone smartphone.
The company said it sold 31.2 million iPhones, a record for the June quarter, compared to 26 million a year ago, but earnings were lower by 22% from the same quarter last year as its profit margins shrank to 36.98% from 42.8%.
The average sale prices were also lower at $581, compared with $608 the previous year.
Apple’s revenue was also better than estimates, with the company profiting $35.3 billion, although it was slightly above the $35 billion last year.
What should Apple launch next?
Analysts said the figures, especially on iPhone sales, might help allay some fears of a slowdown in Apple’s growth rate.
One of the brakes on the growth that Apple has enjoyed in years has been the growing popularity of competitors such as Samsung as well as the release of low-cost smartphones by Chinese companies.
According to the latest data, Apple’s sales in China also fell 4% in the April to June period.
Apple’s CEO, Tim Cook, said the company is going to introduce new products soon.