CUPERTINO (dpa-AFX) - Shares of Apple Inc. (AAPL) jumped 5 percent after the tech giant's earnings for the third quarter trumped Wall Street estimates on Tuesday.
Apple sold 41.03 million iPhone units during quarter, generating $24.85 billion in revenues, up from 40.40 million units last year.
Apple's bottom line continues to be buoyed by iPhone sales, as it contributes about two-thirds of Apple's revenues and a major part of its profit.
The year 2017 marks the iPhone's 10th anniversary and the Cupertino, California-based smartphone maker is expected to unveil three new models to commemorate-- two handsets with improvements and a third redesigned 'premium' iPhone.
'With revenue up 7 percent year-over-year, we're happy to report our third consecutive quarter of accelerating growth and an all-time quarterly record for Services revenue,' said Tim Cook, Apple's CEO.
Apple's third quarter is considered to be its weakest three-month period, as consumers eagerly anticipate the launch of new phone and push back their purchases until fall.
'We hosted an incredibly successful Worldwide Developers Conference in June, and we're very excited about the advances in iOS, macOS, watchOS and tvOS coming this fall,' he added.
Apple reported third-quarter profit of $8.72 billion or $1.67 per share compared with $7.80 billion or $1.42 per share last year. Analysts had expected the company to earn $1.57 per share, according to figures compiled by Thomson Reuters.
Apple said its revenues rose to $45.41 billion from last year's $42.36 billion. Analysts had predicted revenues of $44.89 billion.
Looking forward to the fourth quarter, Apple expects revenue between $49 billion and $52 billion. Analysts currently project revenues of $49.21 billion.
The company also declared a cash dividend of $0.63 per share, payable on August 17 to shareholders of record as of August 14.
AAPL closed Tuesday's trading at $150.05, up $1.32 or 0.89% on the Nasdaq. The stock further gained $7.75 or 5.11% in the after-hours trade.
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