Apple revenue forecast tops expectations, iPhone business stabilizes

Apple Inc’s quarterly profit and revenue beat Wall Street targets on Tuesday and its forecast for fourth-quarter sales topped expectations as well, with Chief Executive Tim Cook telling Reuters that "marked improvement in greater China” drove the results, Trend reports citing Reuters.

Services revenue in the fiscal third quarter rose 12.6% to $11.46 billion, a new record, but missed expectations of $11.73 billion, according to IBES data from Refinitiv. Apple CEO Tim Cook told Reuters that after factoring out a one-time payment from lawsuits a year ago and foreign-exchange effects, the services segment growth rate would have been 18%.

iPhone sales fell 12% to $25.99 billion, about in line with expectations of $25.96 billion, according to Refinitiv data.

Apple shares were up 3.5% to $216.10 in after-hours trading after the news.

China sales fell 4% to $9.16 billion, after declining 22% in the fiscal second quarter. The Chinese smartphone market shipments declined 6% in Apple’s fiscal third quarter, according to market research firm Canalys.