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

51 mins ago - World

EU threatens Belarus with sanctions amid third night of unrest

Belarus riot police detain protesters in Minsk on Tuesday. Photo: Sergei Gapon/AFP via Getty Images

The European Union warned Tuesday it could reimpose sanctions on Belarus as riot police clashed for a third night with demonstrators protesting this week's elections that the EU described as "neither free nor fair," per the Guardian.

Why it matters: The EU removed most sanctions against Belarus four years ago, after "Europe's last dictator" Alexander Lukashenko released political prisoners and permitted protests, AP notes. The EU said in a statement Tuesday it would be "conducting an in-depth review" into its relations with former Soviet country over his elections win claim and the deadly crackdown on protesters.

Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Annelise Capossela/Axios

  1. Global: Total confirmed cases as of 1 a.m. ET: 20,284,882 — Total deaths: 741,126— Total recoveries: 12,585,473Map.
  2. U.S.: Total confirmed cases as of 1 a.m. ET: 5,141,208 — Total deaths: 164,537 — Total recoveries: 1,714,960 — Total tests: 63,252,257Map.
  3. States: Georgia reports 137 coronavirus deaths, setting new daily record Florida reports another daily record for deaths.
  4. Health care: Trump administration buys 100 million doses of Moderna's coronavirus vaccine.
  5. Business: Moderna reveals it may not hold patent rights for vaccine.
  6. Sports: Big Ten scraps fall football season.
  7. World: Anthony Fauci "seriously" doubts Russia's coronavirus vaccine is safe

Ilhan Omar wins Minnesota primary

Photo: Stephen Maturen/Getty Images

Rep. Ilhan Omar (D-Minn.) won the Democratic primary against lawyer Antone Melton-Meaux on Tuesday evening, AP reports.

Why it matters: The race is one that's played out across the U.S. as progressives continue to sweep party nominations. Omar's win officially means all four progressive members of "The Squad" have won their primary elections.