An earlier version of this story misstated Apple’s services revenue growth. It was 18%.
Apple Inc. passed a crucial test Wednesday as the smartphone giant topped expectations with its latest results and gave an optimistic forecast for the holiday quarter.
The company’s iPhone revenue dropped for the fourth quarter in a row, but Apple
got big boosts from two rising stars within its business. Wearables, accessories and other revenue surged 54% and easily beat estimates, while services revenue increased by 18% and marked a beat as well. Overall, Apple’s revenue, excluding the iPhone, increased by 17%.
The December-quarter outlook was a focal point heading into the release, and Apple came in ahead of expectations with the midpoint of that forecast. Shares were up 1.9% in after-hours trading.
Apple’s conference call is likely to feature information about the company’s expectations for its new Apple TV+ streaming service, which launches Nov. 1. The call will mark the first time that Apple’s management faces the investment community since announcing the launch date, $4.99 price point and free-trial offer for this service, which is part of Apple’s ongoing plans to generate more recurring revenue from its massive installed base.