Apple's Q3 Revenue Up, Misses Estimates

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Apple CEO Tim Cook

The tech giant reported earnings of $1.28 per share, up from $1.07, which was more than analysts predicted.

Apple said Tuesday it earned $1.28 per share in its most recent quarter, up from $1.07, while revenue was $37.4 billion, up from $35.3 billion.

The tech and streaming media giant was expected to report earnings of $1.23 a share on $37.93 billion revenue in its third fiscal quarter. While Apple was shy of expectations on revenue, the company said it set a record for that metric in a June quarter.

Shares of Apple rose 1 percent Tuesday to $94.72 and were slightly lower after the closing bell when its financial results were released. The stock is up 20 percent so far this year.

Apple CEO Tim Cook told analysts Tuesday that the record revenue was due in part to strong sales of Mac computers and iPhones, with more the 35 million units of the latter moving during the quarter.

The earnings release comes amid published reports of a new, large-screen iPhone in the works with manufacturers being asked to produce up to 80 million of them by year's end. Rumors suggest Apple will disclose in September that it will offer a new 4.7-inch and as well as a new 5.5-inch version of the iPhone.

On the conference call, Cook also defended Apple's purchase of Beats Electronics and Beats Music for $3 billion, a large sum for entities that make headphones and operates a fledgling digital music service.

"Music is part of Apple's DNA," Cook said, before praising the executive talent behind Beats and noting that its hardware sales are growing rapidly.

Not counting Beats, Cook said Apple has made 29 acquisitions since the beginning of its fiscal 2013.