New York: Tech major Apple reported its third quarter results for the fiscal year after the market closed on Tuesday. CEO Tim Cook told that its services business — like Apple Music, the App Store, and iCloud — would be the “size of a Fortune 100 company by next year.” Although services revenue was slightly down to $5.97 billion from the previous quarter, it was up 19% year-over-year.
Apple stock jumped as much as 6.5% after the company reported earnings per share higher than what Wall Street was expecting. Revenue was directly in line with Apple’s own guidance, but it is still down 14.5% from the same period last year.
Apple’s most surprising beat was in iPads, in which it sold nearly 1 million more units than what analysts had predicted. But its gross margin missed after its low-cost $400 iPhone proved more popular than had been expected.