Apple briefly surpassed a $1 trillion valuation in intraday trading on Wednesday after strong revenue growth from services such as Apple Pay and iCloud fueled the iPhone maker to better-than-expected results.
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The company’s stock rose nearly 5 percent in trading and closed at $210.52, just short of the $212.07 Apple needed for a market capitalization of $1 trillion. Shares have rallied throughout 2019 after concern late last year about dwindling demand for the iPhone.
The company’s services segment topped expectations with $11.45 billion in revenue in the second quarter, during which Apple introduced new subscription plans for news, television and games. Apple also provided stronger-than-expected revenue projections of between $52.5 billion and $54.5 billion for its current quarter, sparking optimism that weak demand in iPhone sales may be improving.
“While China remains a wild card in terms of how quickly iPhone demand will ramp in this key region, we believe the stage is now set for Cook to put his finishing touches on what will be a defining comeback and chapter in his legacy and Apple's future heading into FY20 and beyond,” Wedbush analyst Daniel Ives said in a note to investors.
Apple boosted its cash dividend 5 percent to $0.77 per share and announced an additional $75 billion in share buybacks. Quarterly revenue of $58 billion and earnings per share of $2.46 both beat expectations.
Shares rallied even as Apple’s quarterly revenue declined 5 percent compared to the same period one year ago.
Apple CEO Tim Cook said the company has seen improving demand in the China market, thanks in part to price reductions. For the quarter, iPhone sales dipped 17 percent to $31 billion.
“We certainly feel a lot better than we did 90 days ago,” he added.