Apple is poised to add $40 billion to its market cap and surge past the $1 trillion mark after blowout earnings

Apple CEO Tim Cook.

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Apple CEO Tim Cook.
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Getty

  • Shares in Apple climbed 4% in premarket trading, promising a $40 billion boost to the iPhone maker’s market capitalization that would lift it past $1 trillion yet again.
  • The stock is set to rise after Apple posted record third-quarter service revenues.
  • AppleCare, Music, and cloud services set fresh sales highs, while the App Store posted a third-quarter revenue record.
  • iPhone sales fell 12%, an improvement from their 17% drop in the second quarter, while Mac, iPad, and wearable sales rose.
  • Watch Apple trade live.

Shares in Apple climbed 4% in pre-market trading, promising a $40 billion boost to the iPhone maker’s market capitalization that would lift it past $1 trillion yet again.

The stock’s gains came after the technology titan released a robust set of third-quarter earnings. Services revenue jumped 13% to a record high of around $11.5 billion, offsetting a 2% drop in product sales and lifting total revenue by 1% to $53.8 billion. However, higher costs drove net income down 13% to about $10 billion.

Apple’s constant-currency sales rose across all five of its territories: the Americas, Europe, Greater China, Japan, and the rest of Asia Pacific. Service revenues rose by at least 10% across the board as AppleCare, Music, and cloud services set fresh sales highs and the App Store posted a third-quarter revenue record.

In terms of products, iPhone sales slid 12% to just under $26 billion, an improvement from their 17% drop in the second quarter. Mac sales jumped 11% and iPad sales rose 8%. Moreover, sales of wearables, home products, and accessories soared 48% to $5.5 billion.