Apple Q3 revenue up 7.2% at $45.41 bn on better than expected iPhones sales

This allays investor concerns about a possible delay in launch of iPhone's 10th-anniversary edition

Apple Inc's revenue rose 7.2 per cent to $45.41 billion from $42.36 billion in the quarter, typically the company's weakest, buoyed by better-than-expected sales of its iPhones ahead of the smartphone's 10th-anniversary edition launch later this year. Analysts on average had expected $44.89 billion.

Apple's revenue from the Greater China region fell 9.5 per cent to $8 billion in the latest quarter, as consumers switched to newer domestic offerings.

The company's net income rose to $8.72 billion, or $1.67 per share, in the three months ended July 1, from $7.80 billion, or $1.42 per share, a year earlier.

China sales appear to have stabilised after several quarters of much larger declines, Chief Financial Officer Luca Maestri told Reuters.

A 21.6 per cent jump in the company's services business — which includes the App Store, Apple Pay and iCloud — to $7.27 billion helped boost revenue.

The company forecast current-quarter revenue largely above estimates on Tuesday, helping allay some investor concerns about a possible delay in the launch of the iPhone's 10th-anniversary edition.

The company forecast total revenue of between $49 billion and $52 billion for the current quarter, while analysts on average were expecting $49.21 billion, according to Thomson Reuters I/B/E/S.

Shares of the world's most valuable technology company, which also reported better-than-expected third-quarter iPhone sales, were up 3.1 per cent at $154.64 in extended trading.

The launch of the latest iPhone could potentially move to October or November, instead of September, due to production issues, according to media reports and analysts.

Apple is widely tipped to adopt higher-resolution OLED displays for the latest iPhone, along with better touchscreen technology and wireless charging — which could come with a $1,000 plus price tag.

Analysts on average expect the company to sell 45.55 million iPhones in the current quarter, according to financial data and analytics firm FactSet StreetAccount. Apple sold 45.51 million iPhones in the year-ago quarter.

Apple's fourth quarter generally includes first-weekend sales of the company's latest devices.

The company said iPhone sales rose 1.6 per cent to 41.03 million in the third quarter ended July 1, above analysts' average estimate of 40.7 million units, according to FactSet StreetAccount. Apple sold 40.4 million iPhones a year earlier.

Many customers wait for Apple to launch its new smartphones before deciding on upgrading or replacing their current devices, which usually results in iPhone demand tapering in the months before a release.