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 iPhone X features a brighter screen that spans the device from edge to edge, and boasts facial recognition technology for unlocking the device and other features. But while that model costs a few hundred dollars more than previous iPhones, Apple’s base models — the iPhone 8 and 8 Plus — also had $50 and $30 price increases compared with their predecessors.
Revenue from the app store, music subscriptions and other services grew 31 percent to $9.5 billion, a record for Apple. The figure included a one-time gain of $236 million in connection with resolving various lawsuits, which the company didn’t specify. During the quarter, Apple settled a long-running patent battle with Samsung.
Apple also reported a 37 percent increase, to $3.7 billion, in the division for miscellaneous hardware, including Apple Watch and the HomePod smart speaker. But Apple saw revenue declines in both the iPad and Mac computers.
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.
Parts of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on AAPL at https://www.zacks.com/ap/AAPL