Apple's revenues have exceeded expectations as they sell more expensive iPhones

on Tuesday released quarterly results higher than those of Wall Street and forecasting a higher-than-expected business figure for the current quarter, driven by iPhones sales and service revenues such as App Store, Apple Music and iCloud.

Apple beat sales estimates in part by selling fewer iPhones but more expensive than the badysts expected. The company sold 41.3 million units, below expectations of 41.8 million units.

Apple posted a turnover of $ 53.3 billion and earnings of $ 2.34 per share, up from $ 52.3 billion and $ 2.18 per share respectively. Reuters I / B / E / S

Services 'revenue stands at $ 9.5 billion, exceeding badysts' expectations of $ 9.1 billion, according to Thomson Reuters I / B / E / S. Revenues included $ 236 million from litigation resolution such as Apple's long-standing dispute with Samsung Electronics Co. Ltd.

The average selling price of the iPhone has reached $ 724, according to data from FactSet. Apple's chief financial officer, Luca Maestri, told Reuters that the highest prices were attributable to sales of the company's most expensive recent models, including the iPhone X 999. Maestri said that IPhone X was the most popular model of the quarter. The company is also forecasting a $ 60 billion business to $ 62 billion for its fourth fiscal quarter, which will include the first announced sales of phone models, exceeding expected badysts by $ 59.6 billion According to Thomson Reuters I / B / E While the purchase of smartphones has capped, Apple has extended its range of iPhone with more expensive and less expensive versions, from iPhone X to 349 iPhone SE at the lowest price. It has also eased investor concerns with a $ 100 billion stock repurchase program and promises of growth in services such as music and video streaming, where Apple is competing with Spotify Technology SA ] and Netflix Inc .

But many Apple services are not facing strong rivals. Maestri told Reuters that Apple Care sales, the company's guarantee offer, were up 27% over last year, although the company did not Did not report a sales figure. when the shares of Facebook Inc. Twitter Inc. and Netflix fell sharply following concerns about their future growth. With a market capitalization of $ 938.7 billion at market close Monday, Apple ticks the title of the world's largest trillion dollar company

Apple's top-selling products do not do not yet face US bonds. Trade disputes in China, but President Donald Trump has threatened hundreds of billions of other tariffs whose categories of products have not yet been enumerated.

But the Apple Watch, one of Apple's growth drivers, is one of the categories potentially affected by tariffs. Maestri told Reuters that the company's "wearable" businesses – including Apple Watch and its AirPods earphones – have generated $ 10 billion in revenue over the last 10 quarters and increased by 60% last year. quarter

"We are not yet able to catch up and continue to add capacity for the AirPods," said Maestri.

Apple's margins are facing pressures, such as OLED displays. more vivid colors, in its products. The company said it was expecting gross margins of 38 percent to 38.5 percent in the fourth quarter, compared to 38.3 percent for badysts, according to Thomson Reuters I / B / E / S. Analysts are also closely monitoring Apple's operating expenses, which are increasing due to growth in its research and development expenses.

Apple expects operating expenses of $ 7.95 billion to $ 8.05 billion in the fourth quarter, compared to $ 7.8 billion for badysts, according to Thomson Reuters I / B / E / S.

(Stephen Nellis Report, Lisa Shumaker Edition)

(This story was not edited by Business Standard staff and is generated automatically from a syndicated feed.)