Apple posts strong sales of accessories

Apple offered sceptics some proof yesterday that it can thrive in a future already saturated with iPhones by posting strong sales of accessories such as watches and headphones and offering bullish guidance for the holiday season. The California tech group reported $64 billion in revenue for the three months to September 30, up 2 per cent from a year ago, even as smartphone and Mac sales both declined. That was ahead of the median Wall Street estimate for $62.9 billion, driven led by 54 per cent growth in the group’s increasingly prized Wearables division — comprising watches, headphones and other accessories — to $6.5 billion. Earnings per share rose 4 per cent to a record $3.03, also well ahead of expectations of $2.84 a share. Net income, however, fell 3 per cent to $13.7 billion as operating costs rose from $8 billion to $8.7 billion… The fourth-quarter earnings said little about sales of Apple’s refreshed line-up of iPhones, led by the “Pro” series with triple-lens cameras, as they were released with only nine days to go in the quarter… Apple’s stock rose as much as 3 per cent in after-hours trading, returning to a high it achieved earlier this week and solidifying it as the world’s largest public company, now worth $1.1 trillion. 

Patrick McGee