Apple Shares Up 5% On Earnings Beat

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CEO Tim Cook responds to President Trump's claims that Apple plans to open multiple plants in the United States.

This would mark Apple's biggest iPhone refresh since the iPhone 6 was released in 2016, so it has the potential to trigger a big wave of upgrades and new purchases.

Profit surged 12 per cent to United States dollars 8.7 billion, and revenue rose per cent to USD 45.4 billion, with the California-based company selling 41 million iPhones in the fiscal third quarter to July 1. Apple is likely to introduce iPhone 8 in early September. Cook has reiterated several times that he hopes to double Apple's Services business by 2020 - it's already the company's second-largest business, second to iPhones.

It's a strong suggestion that the iPhone 8 will release in September as originally expected.

Apple reported its fiscal third quarter 2017 earnings after the bell on Tuesday, noting that it sold 41 million iPhones during the quarter.

Apple's Services business, which includes iTunes and the App Store, continues to be a bright spot, and was its fastest growing by year-over-year change in revenue.

No doubt adding to Apple's smugness, analysts had forecasted a decline in sales, predicting that Apple would sell between 7 to 9.8 million tablets during the quarter. This was the big surprise in the report, even though iPad revenue is only about $5 billion, or 20% of iPhone sales.

Mac sales rose 6.7 percent, the third consecutive quarter of gains, while iPads avoided a fourth consecutive quarterly slide with 1.9 percent growth. But after the earnings release, it shot up 5.09 percent in after-hours trading to $157.69.

Apple said its gross profit margin would be between 37.5% and 38% in its fiscal fourth quarter, compared with 38% in the same quarter previous year. "Greater China revenue fell by 10% YoY in 3Q:FY17 but better than our down 15-20% estimate".

In a traditionally slow quarter, revenues rose from $42.4 billion (£32bn) to $45.4 billion (£34.3bn), a third of which came from outside the US. That's a faster growth rate than Apple has seen in some recent quarters.

Other products - including Apple TV, Apple Watch, and Beats products - generated $2.74 billion, up 23.3%. There are reports Apple could launch three iPhone models, with one expected to have a four-digit price tag.

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