Despite falling smartphone sales, Apple on Wednesday posted solid quarterly revenue growth thanks to increasing sales of wearable gear, such as AirPods, and services.
Apple posted profits of $13.7 billion on revenue of $64 billion for its fiscal fourth quarter, topping analyst expectations of $62.7 billion. The tech giant was also bullish in its guidance ahead of the important holiday season. For the current quarter ending in January, Apple forecast revenue of $85.5 billion to $89.5 billion, in line with Wall Street forecasts.
“We’re very optimistic about what the holiday quarter has in store,” Apple CEO Tim Cook said in a statement.
Shares of the tech giant jumped 3%, to $250, after markets closed. Apple’s stock price has risen 54% this year, compared with 22% for the S&P 500 index.
Apple, which has been riding the smartphone revolution since 2007, has been trying to offset the decline in smartphone sales by turning to services, such as a music subscription, credit card and streaming service.
On Friday, Apple will launch its new Apple TV service. But lukewarm early reviews of the $4.99 monthly service and a small content library suggest Apple does not hold a candle to entertainment powerhouses like Disney, HBO or Netflix.
“We feel stronger that consumers will not cancel Netflix for Apple TV Plus,” Justin Patterson, analyst at Raymond James, wrote in a note.