Apple breezes past estimates as iPhone sales boost profits

Tech giant Apple Inc reported its earnings for its fiscal first quarter after the close of US markets on Tuesday, with the iPhone maker posting impressive diluted earnings per share and revenue figures which beat analysts' estimates.

Some traders had expected Apple to falter with a supposed lack of demand for its flagship smartphone, but its sales figures confounded that assertion. Apple reported that international sales represented 64% of the company's revenue for the period.

It reported an all-time quarterly revenue high of $78.4bn, as well as another record for diluted earnings per share of $3.36. Analysts had estimated that revenue would reach $78.4bn with EPS of $3.21.

The results were also well above the corresponding period from a year earlier, when Apple had revenue of $75.9bn with diluted earnings per share of $3.28.

"We're thrilled to report that our holiday quarter results generated Apple's highest quarterly revenue ever, and broke multiple records along the way. We sold more iPhones than ever before and set all-time revenue records for iPhone, Services, Mac and Apple Watch," said Tim Cook, CEO of Apple.

Apple's share price was boosted by more than 3% in after-hours trading to $125.02.

The results are particularly impressive considering the increase in competition for Apple for its tech products, such as the iPhone and iPad. It has made attempts to diversify its operations, with a push from Cook's company towards services.

"Revenue from Services grew strongly over last year, led by record customer activity on the App Store, and we are very excited about the products in our pipeline."