Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa Bay news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Charlotte news in your inbox

Catch up on the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Apple CEO Tim Cook this week at a product launch event in Brooklyn. Photo: Stephanie Keith/Getty Images

Apple reported record sales and profits for the September quarter, though unit sales for the iPhone were lower than some analysts were looking for. Meanwhile, its revenue from services topped $10 billion for the first time.

Why it matters: Apple is the world's highest-valued company and its results are closely watched as a signal of the health of the tech industry, though its success can sometimes be an outlier. Earnings this quarter from some other tech companies have failed to meet Wall Street expectations.

Apple reported per-share earnings of $2.91, on revenue of $62.9 billion, compared to analysts expectations of $2.79 and revenue of $61.49 billion. The company saw double- digit gains in revenue from last year in every part of the world, led by Japan, where sales were up 34 percent.

Shares nonetheless fell in initial after-hours trading following the report, changing hands recently at $212.12, down $10.10, or more than 4%.

Outlook: For the coming quarter, which includes the all-important holiday shopping season, Apple said to expect revenue of between $89 billion and $93 billion and gross profit margins between 38 percent and 38.5 percent. Analysts were expecting sales of roughly $91 billion, per Zacks.

By the numbers (with year-over-year change):

  • iPhone units 46.9 million (flat)
  • IPhone revenue $37.2 billion (up 29%)
  • IPad units 9.7 million (down 6%)
  • IPad revenue $4.1 billion (down 15%)
  • Mac units 5.3 million (down 2%)
  • Mac revenue $7.4 billion (up 3%)

Go deeper

In photos: D.C. and U.S. states on alert for pre-inauguration violence

National Guard troops stand behind security fencing with the dome of the U.S. Capitol Building behind them, on Jan. 16. Photo: Kent Nishimura / Los Angeles Times via Getty Images

Security has been stepped up in Washington, D.C., and state capitols across the U.S. as authorities brace for potential violence this weekend.

Driving the news: Following the Jan. 6 insurrection at the U.S. Capitol by some supporters of President Trump, the FBI has said there could be armed protests in D.C. and in all 50 state capitols in the run-up to President-elect Joe Biden's inauguration Wednesday.

14 hours ago - Politics & Policy

The new Washington

Illustration: Sarah Grillo/Axios

The Axios subject-matter experts brief you on the incoming administration's plans and team.

Rep. Lou Correa tests positive for COVID-19

Lou Correa. Photo: Tom Williams/CQ-Roll Call, Inc via Getty Images

Rep. Lou Correa (D-Calif.) announced on Saturday that he has tested positive for the coronavirus.

Why it matters: Correa is the latest Democratic lawmaker to share his positive test results after last week's deadly Capitol riot. Correa did not shelter in the designated safe zone with his congressional colleagues during the siege, per a spokesperson, instead staying outside to help Capitol Police.

You’ve caught up. Now what?

Sign up for Mike Allen’s daily Axios AM and PM newsletters to get smarter, faster on the news that matters.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!