Shares in Apple (NASDAQ: AAPL) opened at a record high Wednesday, with a market capitalization of over $830 billion, after the iPhone maker reported better-than-expected earnings.
Apple reported fiscal third-quarter earnings on Tuesday that beat analysts' expectations, and revenue that topped estimates, as it sold more iPhones than expected.
Despite expectations for a "lame duck" quarter ahead of the iPhone 8 launch, Apple sold 41 million iPhones during the quarter, surpassing 1.2 billion total iPhones sold.
Adjusted EPS came in at $1.67 per diluted share vs. $1.57 per share. That's up compared with adjusted earnings of $1.42 per diluted share on revenues of $42.36 billion in the year-ago period.
Revenue was $45.4 billion vs. $44.89 billion expected.
The company also hit a major goal, as the App Store drove Apple's Services division to a record high, the size of a Fortune 100 company.
As a result, Morgan Stanley raised its September quarter iPhone unit estimate significantly to 43 million from 37 million. One of the company’s analysts maintained her overweight rating and $182 price target for Apple shares.
Still, the company is not without challenges, especially in China, where sales fell 10% year over year this quarter and 14% year over year last quarter. Local competitors such as Huawei and Xiaomi have pressured Apple's market share, while Apple has added executives and bent to accommodate regulators in Beijing.
Apple shares took flight $7.29, or 4.9%, to $157.34 mid-morning Wednesday.
