Apple made more money from higher priced iPhones in the latest quarter, even as unit sales were relatively unchanged.
Shares of Apple rose nearly 3 percent Tuesday after it reported fiscal third-quarter results that beat Wall Street expectations, moving the tech giant ever closer to $1 trillion in value. It would be the first.
Apple sold essentially the same number of iPhones last quarter as it did a year prior, but sales and profits soared as it made more money from higher-priced devices.The tech company posted a $11.5 billion profit for the three months ending in June, up 32% from the same period a year ago. Apple’s revenue increased 17% to $53.3 billion, a new record for its fiscal third quarter.Earnings beat the $2.17 per share expected by 10 analysts surveyed by Zacks Investment Research.

For the current quarter ending in September, Apple said it expects revenue of $60 billion to $62 billion. Analysts surveyed by Zacks had expected revenue of $58.59 billion.

The results highlight Apple’s successful shift away from depending on selling more and more iPhones in order to grow its business.

Another development to consider: China’s Huawei has passed Apple to become the world’s second largest smartphone seller, according to research firms IDC, Canalys and IHS Markit.

Unit volume rose just 1 percent from a year ago to 41.3 million, which was expected, but the average selling price grew 20 percent to $724 per iPhone, up from $606 a year ago. That suggests that more consumers were buying its premium iPhone X, which starts at $999. The base models, the iPhone 8 and 8 Plus, also had $50 and $30 price increases compared with their predecessors.

Apple shares have climbed 12 percent since the beginning of the year, while the Standard & Poor’s 500 index has climbed slightly more than 5 percent. In the final minutes of trading on Tuesday, shares hit $190.29, a climb of 28 percent in the past 12 months.

Read the full Apple earnings press release online.