Shares in Apple Inc (NASDAQ:AAPL) jumped after the tech giant’s third quarter results came in better than expected.
The stock rose US$6.58, or 6.8%, to US$103.25 as Apple’s sales of iPhones fell by less than the market had anticipated.
The company sold 40.4 million of the devices in the period, down 15% from the same quarter a year ago but still more than a market consensus of 40.02 million.
Apple also said it expected iPhone average selling prices to improve into September. Apple is expected to launch the iPhone 7 during the month.
The group has faced lower iPhone demand in China and in more mature markets as people stick with their old phones for longer.
The iPhone makes up about two thirds of Apple’s total sales and the company has developed different versions, such as the cheaper SE model, to cater for people on a limited budget.
Apple's quarterly net profit fell 27% to US$7.8bn, while revenue of US$42.4bn beat the US$42.1bn market consensus.
Chinese sales fell by a third, which Apple blamed on currency volatility and the country’s economic downturn.
Apple's services business, which includes the App Store, Apple Pay, iCloud and other services, boosted revenue by 19% to nearly US$6bn.
The company is hoping to increase demand for such services to offset the decline in device sales.
Services provide an ongoing source of revenue and gross margins from them are better than the group average.
Apple expects to make fourth-quarter revenue of between US$45.5bn to US$47.5bn, ahead of the market consensus of about US$45.7bn.