Apple reported fiscal third-quarter earnings and revenue that beat analyst forecasts on strong iPhone shipments, sending shares higher in late trading. But fourth-quarter sales guidance fell short. "I don't subscribe to the view that the higher end of the smartphone market has hit its peak," CEO Tim Cook said on the earnings call.
Net income fell 22 percent to $6.9 billion, or $7.47 per share, from $8.8 billion, or $9.32 per share, in the year-earlier period. Revenue ticked up to $35.3 billion from $35 billion a year ago. The results still beat analyst forecasts for earnings of $7.32 per share on sales of $35.02 billion, according to estimates for Thomson Reuters.
The solid showing eased concerns that growing competition is hurting demand for Apple's top-selling product as the global smartphone market matures. Rival Samsung Electronics is facing a similar challenge with its Galaxy phones. The company, which like Apple has had a track record of beating forecasts, issued a disappointing earnings forecast earlier this month. Samsung reports earnings after the bell on Thursday.
Apple's stock, which has fallen 20 percent since January, rose more than 3 percent in after-hours trading. What's the stock doing now? "The iPhone number should provide some comfort to investors who were worried about smartphone demand. That's one of the reasons the stock is up. Expectations were not strong for this quarter," said Shannon Cross of Cross Research.
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