Under-promise and over-deliver seems to be the motto for Apple (AAPL - Get Report) this quarter. Apple shares spiked after hours after releasing better than expected earnings. Apple's revenue came in at 42.4 Billion which was at the high end of the guidance provided.
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Here's seven things you should know about Apple's third-quarter Earnings Results:
-- 40.4 Million iPhones were sold in the quarter.
-- The third quarter saw the best iPad comparison in over 10 quarters, with a 7% increase.
-- Apple saw double-digit growth rates in Russia, Brazil, Turkey, India, and Canada. Apple continues to heavily focus and invest in international markets China and India, including Apple's recent investment in Chinese ridesharing app Didi Chuxing.
-- Apple pay will be integrated into Safari, allowing users to pay for products online directly through their browser. Monthly active user's grew 450% year-over-year with over half of transactions coming from international markets.
-- Services revenue were up 19% to $6 billion in the quarter.
-- iPhone was the No. 1 ranked phone on China Mobile's network.
-- Apple now holds over $231 billion in cash on its balance sheet.
As usual, Apple CEO Tim Cook was extremely bullish about the future prospects of the company.
"I am very optimistic about the future, I have seen an install base that has grown incredibly larger, I see a switcher rate that is the highest ever," said Cook.
As investors anxiously await the iPhone 7, Cook did not mention anything but hinted at a possible fall release. "All of the things that are coming in the fall, make it even more instrumental," added Cook.
Apple's CEO even spoke on the amazing success that Pokemon Go has had in such a short time and the future of Augmented Reality. "I think AR can be huge. It is incredible what has happened there, it shows the AR can be really great, we have been and continue to invest a lot in this, we are high on AR in the long run, and think there is a great commercial opportunity," said Cook.
Phil Davis, CEO of PSW Investments was impressed with the results despite the low expectations. "The best thing about this beat is that it came despite a 33% decline in China sales -- due to factors outside of Apple's control. For a quarter without a major new product -- this was fantastic," said Davis.
Apple shares were up nearly 7% after hours.