Abu Dhabi, UAESunday 31 May 2020

Apple beats profit forecasts with growth in digital services and wearables

Apple shares rose about 2 per cent in after-hours trading following results

Apple beats profit forecasts amid growth in watches and AirPods. Reuters
Apple beats profit forecasts amid growth in watches and AirPods. Reuters

Apple on Wednesday reported stronger-than-expected profits for the past quarter, as growth in digital services and wearables helped to offset slower iPhone sales.

Profit in the quarter ending in September dipped 4 per cent from a year ago to $13.7 billion while revenues edged up 2 per cent to $64bn.

Apple, which is set to launch a new TV streaming service this week, had strong revenue gains in its services segment, which includes music, digital payments, software, and wearables and accessories including Home Pod, Apple Watch and ear buds.

Chief executive Tim Cook said Apple had its best revenue gains for the fiscal fourth quarter.

"With customers and reviewers raving about the new generation of iPhones, today's debut of new, noise-cancelling AirPods Pro, the hotly anticipated arrival of Apple TV+ just two days away, and our best lineup of products and services ever, we're very optimistic about what the holiday quarter has in store," Mr Cook said.

He said new iPhone 11 models were off to "a very, very good start".

Apple shares rose about 2 per cent to $247.50 in after-hours trading after the results.

Updated: October 31, 2019 01:40 PM

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