Shares of Apple hit a record high Wednesday, bringing its market cap within $10 billion of the coveted $1 trillion mark. The jump came after the company posted better-than-expected earnings for its fiscal third quarter and forecast revenue for the current period would be higher than analyst expectations.
While the tech giant sold fewer of its flagship iPhones than expectedー41.3 million units versus estimates for 41.8 millionーthe average selling price of $724 was above forecasts.
In a conference call after the report, CEO Tim Cook said, “We’re expanding our reach into emerging markets and seeing strong double-digit growth in revenue, and we’re making great progress toward our goal of significantly expanding our services business."
Some analysts were concerned there would be a drop off in demand for the company's highest-priced iPhone X, which sports a starting price tag of $999. The three months ending in July are often considered the most "boring" quarter for Apple, with the holiday season behind it and many customers waiting for the newest set of offerings, usually unveiled in the fall. But in an interview with Reuters, Apple CFO Luca Maestri said the iPhone X was the company's best-selling model during the quarter.
Another bright point for Appleーrevenues from its services business, which includes its App Store, Apple Music, and iCloud. Sales in that sector rose 31 percent to $9.5 billion.
The company didn't report a major impact from Chinese tariffs in the quarter, but Cook said the company would continue to monitor the situation.
Overall, revenues came in at $53.3 billion for the quarter. The company said sales for its fiscal fourth quarter, which would include early sales of its latest devices, would be between $60 and $62 billion.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
Starbucks’ AI barista aims to speed service and improve experience. Nick Lichtenberg, Fortune Business Editor, explains its impact on workers and customers.
