Apple’s earnings in the third quarter of its fiscal year in 2019 beat predictions, the company announced Tuesday, sending shares up 3% in after hours trading.
The tech company reported a quarterly revenue of $53.8bn, higher than its previous estimate of $53.39bn.
Apple saw its services sales rise, as it continues to reposition itself as a services and software firm in addition to the hardware it is known for, increasing funding to services such as Apple Pay, Apple Care, and Apple Music. It also saw a bump in overall revenue despite iPhone revenue being lower than anticipated – $25.99bn compared to an expected $26.54bn.
“This was our biggest June quarter ever, driven by all-time record revenue from services, accelerating growth from wearables, strong performance from iPad and Mac and significant improvement in iPhone trends,” said Tim Cook, Apple’s CEO.
Apple’s earnings report comes as big tech companies are facing more scrutiny and threat of regulation from US legislators. On 23 July, the US justice department announced it was opening a broad antitrust review into major technology firms including Facebook, Alphabet’s Google, Amazon and Apple.
The investigation comes amid calls from lawmakers, including Democratic presidential candidates such as Elizabeth Warren, for tech companies to face more scrutiny.
Apple said it expects its quarter four revenue to be between $61bn and $64bn. It will discuss its third quarter results in a call starting at 2pm PT on Tuesday.