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Bottom line: While many companies had a tough last quarter, Apple continues to grow at a rapid pace. At this rate, it looks as if the iPhone maker will beat other tech giants to the title of 'World's first trillion-dollar company.'
Facebook, Samsung, and Netflix all saw growth slowdowns in their recent financial reports, but it's been a different story for Apple. Cupertino has just announced its earnings for Q3 of the 2018 fiscal year, which saw its fourth consecutive quarter of double-digit revenue growth.
Traditionally a slow period, Q3 2018 turned out to be the strongest third quarter in Apple's history. Revenue was up 17 percent YoY to $53.3 billion, while operating income was $12.6 billion and net income stood at $11.5 billion. This saw earnings per share of $2.34, up from $1.67 this time last year.
iPhones continue to be the biggest earners for the company. Apple sold 41.3 million of its handsets during the last quarter, up 1 percent YoY, while revenue was up 20 percent thanks to the average sale price jumping over $120 to $724.12. Despite its high price tag, the iPhone X has been Apple's best selling device since it launched last November.
The Services business, which encompasses the App Store, digital content, AppleCare, Apple Pay, licensing, and other services, was another major area of growth, increasing 31 percent YoY to $9.55 billion. Apple Music and cloud services both grew 50 percent, while the App Store and the company's free services are also doing exceptionally well.
Although iPad sales were up 1 percent to 11.5 million units sold, the availability of Apple's cheaper tablets means revenue is down 5 percent to $4.7 billion. Mac devices were another disappointing area for Apple, as sales of the machines fell 13 percent to 3.72 million.
'Other products,' which includes Apple Watches, iPods, and home products, beat analysts' estimates by generating $3.74 billion in revenue, up 37 percent YoY but down 5.3 percent compared to the previous quarter.
"Apple watch delivered record June quarter performance with growth in the mid 40 percent range, and we are thrilled to see so many customers enjoying AirPods. It reminds me of the early days of iPod, when I started noticing white ear buds everywhere I went," said CEO Tim Cook, on an earnings call.
Apple is now worth around $935 billion, putting it in a race against Amazon and Alphabet to become the world's first trillion-dollar company. With a new line of iPhones on the horizon, Apple could reach the milestone before its rivals.