There seems to have been a collective sigh of relief after Apple delivered unexpectedly strong third quarter results on Tuesday.
The tech company's share price in after hours trading on Tuesday hit a record high of $159.
In early trade on Wall Street on Wednesday, the Apple share price was up 5.1% to $157.64 and boosted the blue chip Dow Jones index past its 22,000 mark in early Wall St trade.
Generally, the April-June quarter is a soft one for Apple as iPhone buyers normally wait it out to purchase newer models released in the autumn.
This wasn’t the case this time around as the company hit a significant milestone after shipments of iPhone units rose 1.6% to 11.42 million. Apple’s profit increased 12% to $8.72bn.
Services the size of a Fortune 100 company
The company displayed its best growth in three successive quarters with revenue increasing 7.2% to $45. 4bn from the same period last year.
Revenue was not just from the sale of iPhones but also healthy sales in iPads and Macs which had stagnated recently. Ipads managed 1.9% sales growth with an increase in shipments of 15% to 11.42 million units, while Mac sales jumped 6.7%.
Services also increased for the year to $7.3bn — a 22% growth rate. Double digit growth was seen around the world, in each geographic segment.
CEO, Tim Cook commented on the earnings conference call: “Services has become the size of a Fortune 100 company a milestone we have reached sooner than we expected.”
Hotly-anticipated sales of the new phone have sent Apple’s stock surging 28% this year. The rally in technology shares has sent the Nasdaq 100 Technology Sector Index up a whopping 22.52% compared to the benchmark S&P 500’s 10.61%.
Can Apple provide the missing spark?
The ripple effect of Apple’s earnings are sure to make an impact as techs have been affected by a recent spate of sell-off activity. Tech shares rallied in Europe and Asia on Wednesday particularly iPhone hardware component suppliers in Asia.