Shares in Apple have surged in after-hours trading after it issued guidance suggesting demand is strong for the iPhone 11 ahead of its crucial Christmas quarter.
The tech firm released its fourth quarter and annual results after the market close.
The performance to the end of September covered just (days of sales for the iPhone) Range.
So investors were concentrating on Apple’s forecasts, which showed it was expecting a range for sales of between $ 85. 5bn and $ 89. 5bn in the last three months of the year – the first quarter of its financial year.
That beat analysts’ expectations and shares were up to 3% higher in response.
Apple reported $ 33. 4bn of iPhone sales between July and September – a 9% decline on the same period last year.
But it was suggested that price cuts on many ranges will help drive momentum in the holiday season.
Chief executive Tim Cook told the Reuters news agency its new iPhone 11 models were off to “a very, very good start”.
He also pointed to growing sales of AirPods, Apple Watches and streaming service revenues as it attempts to move away from reliance on its iPhones.
New services include the Apple Card credit card and TV streaming. Apple TV Plus is due to begin on Friday.
Apple said its services and accessories segments generated $ 12. 51 bn and $ 6. 52 bn in revenue in the last quarter – contributing to total revenue of $ 64 bn.
Mr Cook said its forecasts reflected growing hopes of a resolution to the US-China trade war.
It assembles most of its products in China.
He suggested targeted price cuts there were proving successful following a challenging period that saw a strong dollar and cheaper competition knock sales.
“In China specifically … we picked locally relevant price points that were more similar to the price points that had great success with earlier, “he added.
Apple sales for its Greater China region fell by 2.4% to $ 11 n in the fourth quarter and Mr Cook said the recovery improved in its biggest growth market as the period wore on.
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