Apple Sales Exceed Expectations as Buyers Wait for New iPhones

Apple Sales Exceed Expectations as Buyers Wait for New iPhones

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Inside Apple’s flagship store in San Francisco. The company reported revenue of $45.4 billion last quarter, up 7 percent from the same quarter last year.

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Justin Sullivan/Getty Images

SAN FRANCISCO — Apple exceeded Wall Street’s expectations for revenue and profits for its quarter that ended July 1 as anticipation builds for new iPhones to be released this fall, the 10th anniversary of the original iPhone.

However, the company’s revenue projections for the quarter that will end in September, the month when new models are traditionally released, spanned a wide range, suggesting that long-rumored technical problems could delay at least some phones until the holiday quarter.

Apple shares rose more than 5 percent in after-hours trading following release of the results.

In an interview, Apple’s chief financial officer, Luca Maestri, said Apple saw increases in unit sales and revenue in every product category, including iPads, which had been struggling in recent quarters. Global sales of iPhones rose 2 percent to 41 million units. Revenue from services, which include app sales as well as iCloud storage and Apple Music, grew 22 percent, ahead of Apple’s previous projections.

For the quarter, Apple reported revenue of $45.4 billion, up 7 percent from the same quarter last year. Net income was $8.7 billion, or $1.67 a share.

Apple said revenue fell 10 percent in greater China, a key market where sales have dropped for six consecutive quarters. But Mr. Maestri said that sales in mainland China had stopped falling, with sales to tourists in Hong Kong dragging down the region’s numbers. “We feel we will do better in the September quarter,” he said.

The company is wrestling with increased competition in China from Samsung, as well as from Chinese companies making Android phones. Apple has also capitulated to pressure from the Chinese government to ban apps and content that the authorities dislike, such as virtual private networking apps that allow Chinese consumers to evade government censors.

Analysts had expected Apple to report revenue of $44.9 billion and net income of $8.2 billion, or $1.57 a share, according to estimates compiled by S&P Capital IQ.

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