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Apple’s earnings announcement today noted that Apple Pay now is completing more transactions transactions on mobile than both Square and PayPal…
This is huge news for Apple…
Apple Pay is part of the company’s services business which did almost $10 billion in revenue last quarter.
According to Apple CEO Tim Cook, Apple Pay transactions tripled from a year earlier to over 1 billion transactions.
The company announced that both 7-Eleven and longtime Apple Pay holdout CVS would be adding the digital payment service at checkout.
Apple Pay is also launching in Germany in the next year.
The third quarter is typically the slowest of the year… but Apple beat expectations by raising the price of the average device sold to approximately $700 per unit.
The coming fall and winter quarters are usually the biggest of the year for Apple in terms of revenue and profit.
With the expected lineup of new iPhones with the iPhone X form factor, I would expect a lot of pent up demand to be released soon causing a massive wave of upgrades akin to the fabled iPhone 6 and 6 Plus “supercycle” of 2014.
Apple may reach the symbolic milestone of $1 trillion in market cap tomorrow, but if not, I expect it will surpass it in the fall and keep going…
On its way to $2 trillion.