Apple shares rise on 3Q jump in average price of iPhones

By Associated Press

Apple made more money from higher priced iPhones in the latest quarter, even as unit sales were relatively unchanged.

Shares of Apple rose nearly 3 percent Tuesday after it reported fiscal third-quarter results that beat Wall Street expectations.

Unit volume rose just 1 percent from a year ago to 41.3 million, which was expected, but the average selling price grew 20 percent to $724 per iPhone, up from $606 a year ago. That suggests that more consumers were buying its premium iPhone X, which starts at $999. The base models, the iPhone 8 and 8 Plus, also had $50 and $30 price increases compared with their predecessors.

Cupertino, California-based Apple said net income rose 32 percent to $11.52 billion, or $2.34 per share.

That beat the $2.17 per share expected by 10 analysts surveyed by Zacks Investment Research.

The maker of iPhones, iPads and other products posted revenue of $53.27 billion, up 17 percent, also exceeding Street forecasts for revenue of $52.37 billion.

For the current quarter ending in September, Apple said it expects revenue of $60 billion to $62 billion. Analysts surveyed by Zacks had expected revenue of $58.59 billion.

Apple shares have climbed 12 percent since the beginning of the year, while the Standard & Poor’s 500 index has climbed slightly more than 5 percent. In the final minutes of trading on Tuesday, shares hit $190.29, a climb of 28 percent in the past 12 months.

This article provided by NewsEdge.