Apple shares rise on blockbuster iPhone sales

October 27, 2015, 8:46 PM UTC
Apple Unveils New Versions Of iPhone 6, Apple TV
SAN FRANCISCO, CA - SEPTEMBER 9: Apple CEO Tim Cook stands on stage during a Special Event at Bill Graham Civic Auditorium September 9, 2015 in San Francisco, California. Apple Inc. unveiled latest iterations of its smart phone, forecasted to be the 6S and 6S Plus and announced an update to its Apple TV set-top box. (Photo by Stephen Lam/ Getty Images)
Photograph by Stephen Lam — Getty Images

(Reuters) – Apple reported higher-than-expected quarterly revenue and profit as sales of iPhones surged 36%, driven by the launch of the 6S and 6S Plus models last month.

The world’s largest company by market value said on Tuesday that it sold about 48.05 million iPhones in the fourth quarter. Analysts on average had expected sales of 48.72 million iPhones, according to a poll by Fortune magazine.

Apple’s sales in China nearly doubled to $12.52 billion, accounting for nearly a quarter of its total revenue.

The company’s shares (AAPL) rose 2.6% in extended trading.

Apple posted record sales of its latest iPhones in the first weekend that they hit stores in late September as it included China sales for the first time.

Many analysts believe that China is poised to replace the United States as Apple’s biggest market.

Apple’s net income rose to $11.12 billion, or $1.96 per share, in the quarter ended Sept. 26 from $8.47 billion, or $1.42 per share, a year earlier.

Net sales rose about 22% to $51.50 billion.

Analysts on average had expected a profit of $1.88 per share and revenue of $51.11 billion, according to Thomson Reuters I/B/E/S.

Apple’s shares, which fell steeply in mid-August as concerns about the company’s business in China hit fever pitch, were trading at $117.75 after the bell.

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