Tech giant Apple (AAPL Stock Price Report) went through a bit of trouble at the turn of the year. iPhone sales plummeted in China and it had to offer deep discounts to make sales. Naturally, it had an effect on the company’s stock and valuation as well. There was a lot of anxiousness among shareholders ahead of its Q3 financial results.
But the company managed to deliver a blockbuster result that took most by surprise. More importantly, Apple stock price rose substantially and Apple’s market cap is again approaching that magical $1 trillion mark.
Solid Earnings Boost Apple Stock Price
In 2018, Apple had generated $53.3 billion in revenues in the third quarter. The company had projected that its revenues for the quarter this year to be $53.5 billion. However, Apple managed to beat its own projections by generating revenues of $53.8 billion for the quarter. It reflected a year on year rise of 1 %.
Apple also managed to break all previous records for revenues generated in this particular quarter. The Chief Executive Officer of Apple said that the sales of iPhones rose significantly in China. On a year over year basis, the company managed to grow its sales despite a raft of challenges.
That being said, the more significant development from Q3 results is the fact that Apple’s service-related products grew more important. These are thins like AppleMusic, cloud services, store search, and Apple Pay. The services segment made up as much as $11.46 billion of the revenues, which reflects a year on year rise of 13%. The company also believes that the revenues could hit $51 billion by the end of next year.
Apple Pay has shown tremendous growth in the number of users and transactions as well. On the other hand, the company’s wearable products segment. This includes products like iPod Touch, Apple TV, Air Pods, Beats and Apple Watch, which proved to be the best performer. The segment generated 50% growth in revenues and remains a pillar of the company’s business.