While some of the technology sector’s top players disappointed Wall Street with their latest results, Apple Inc. has inspired investors, pushing the company’s valuation to nearly US$1 trillion.
Apple’s fiscal third-quarter results were fueled by solid sales of its flagship product, the iPhone. Revenue tied to the device rose 20 per cent from the previous year, totaling nearly US$30 billion. In addition, the pricier new iPhone X, which has a starting price of $1,319 in Canada, boosted the average selling price for iPhones by 20 per cent year-over-year.
Meanwhile, Apple’s services revenue – which is helped by app downloads and subscriber offerings like Apple Music – is becoming an increasingly important driver of top line growth.
Against the stronger-than-expected backdrop, Apple shares rallied in after hours trading Tuesday, pushing them towards US$200 per share.
That move left the stock less than 3 per cent away from a US$1 trillion valuation. Apple needs to reach the US$203 per share level to reach the trillion-dollar milestone.
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