The priciest smartphone in Apple’s lineup has barely reached store shelves, but the anticipation did not stop consumers from handing over their money.
Apple posted its quarterly earnings Thursday that were far above Wall Street expectations with revenue that beat the Street as well.
The iPhone maker’s adjusted earnings per share for its fiscal fourth quarter reached $2.07 while Wall Street was expecting $1.87. Revenue during the quarter was $52.6 billion while Wall Street was expecting $50.7 billion.
Unit sales of the iPhone for the quarter surpassed 46.7 million while analysts were expecting 46 million.
Last year during the same quarter, Apple posted $1.67 in adjusted earnings per share with revenue of more than $46.8 billion.
Apple’s guidance for its first quarter was between $84 billion and $87 billion, while Wall Street expected $84.9 billion.
iPhone sales were higher at Apple than analysts on Wall Street were expecting, but still earned much more money. The new iPhone 8 and sibling 8 Plus quickly became the top-two selling Apple products upon their launch, surprising executives, said CEO Tim Cook during his conference call.
Apple is not expecting to slow down anytime soon. Its aforementioned guidance for revenue was at the high end of projections.
Apple shares were up over 3% in trading after hours pushing beyond the intraday all time high price that was set on Wednesday during regular trading hours.
Apple’s latest generation iPhone X will reach stores Friday, which is later than normal and is not represented in the report on Thursday for its quarterly earnings. The report barely includes sales of the new iPhone 8 let alone the much anticipated iPhone X.
Cook during his call said that orders for the iPhone X were strong for both its direct customers and for carriers across the globe.
It sales started first in Australia and Cook said he was told that several hundred customers were waiting for one Sydney store to open.
During the recently ended quarter, gross margins reached 37.8% slightly less that the 38% that was expected, which means the products Apple sells are becoming more expensive to produce.
All this arrives as Apple approaches a valuation of a trillion dollars securing its place as the world’s most valuable public company.
Shares of Apple have increased by approximately 50% during the last year, and its market capitalization pushed beyond the $900 billion mark in afterhours trading.