Notes of interest from Apple's Q3 2017 conference call

Posted:
in AAPL Investors edited August 2017
Apple again saw its sales and revenue grow in the third fiscal quarter of 2017, with $45.4 billion in revenue on strong iPhone, iPad and Mac sales. Following the news, the company held a conference call with media and analysts, and notes of interest follow.




Participating in Tuesday's call were Apple Chief Executive Tim Cook and Chief Financial Officer Luca Maestri.

Highlights

  • Apple has surpassed 1.2 billion cumulative iPhones sold, and the iPhone 7 series continues to be a strong performer.
  • iPad grew for the first time in 4 years, and U.S. education market sales of iPad were up more than 30 percent.
  • Sales of Apple Watch were up over 50 percent in June quarter. Apple says it's the No. 1 selling smartwatch in the world.
  • Apple ended the quarter with $261.5 billion in cash, 94 percent of it held overseas.

Apple iPhone business

Apple said the iPhone 7 is outperforming the iPhone 6s from a year ago, helping to drive sales and keep selling prices up.

Many markets in Asia, Latin America and the Middle East grew sales by more than 25 percent, despite the fact that iPhone SE launched in the June quarter last year in many markets.

iPhone ASP was up year over year, to $606, thanks to strong performance of the iPhone 7 Plus.

When asked about WeChat in China, Cook said he sees Tencent as one of Apple's best developers.

Upgrades for this fiscal year are the highest Apple has ever seen. The rate, however, is similar to what Apple saw with previous models, except for iPhone 6, which had an "abnormally high upgrade rate,' Cook said.

Switching outside of China was up year over year.

Apple's iPad business

Apple achieved its highest global market share in over 4 years.

U.S. education market sales of iPad were up more than 30 percent

NPD says iPad had 55 percent share of tablet sales in U.S. in June, and 8 of top 10 selling tablets.

Purchase intent for customers planning to buy a tablet is more than 70 percent for iPad.

Bank of America, Medtronic and Panera plan to roll out the 10.5 inch iPad pro through key areas of their organizations.

Walmart will also be deploying iPad for employee training.

Apple's Mac business

Apple once again outpaced the larger PC market with growing Mac sales this last quarter.

The company debuted new MacBook Pros, iMacs, and MacBook Airs at WWDC in June.

Cook says the Mac is off to a great start in back-to-school seasonal sales.

Apple Watch

Sales of Apple Watch were up over 50 percent in June quarter. Apple says it's the No. 1 selling smartwatch in the world.

Apple's services business

Services revenue was up 22 percent, to a record $7.26 billion.

Maestri said Services growth was driven largely by the App Store. Apple says the iOS App Store outsells Google Play by two times.

Apple's next (Q4) fiscal quarter

Apple sees revenue between $49 billion and $52 billion next quarter.

It has forecast gross margin between 37.5 and 38 percent.

Comments

  • Reply 1 of 17
    brucemcbrucemc Posts: 1,541member
    All quiet on the troll front...
    lolliverwatto_cobra
  • Reply 2 of 17
    I'm stating the obvious here...the symmetry in the Apple's product lines is most impressive...

    One 'consumer' iPad and 2 iPad Pro models.

    One 'consumer' MacBook (A marvel of engineering, BTW!) and 2 MacBook Pro's (Sorry, the MacBook Air and the MacBook Pro 'esc' don't count. Mainly b/c they don't fit my example.) 

    The iPhone Se and the 2 iPhone 7's.

    Simplicity, elegance and state of the art build quality. Apple has worked hard in the last couple of years to effect this.

    Oh, and the best selling smart watch in the world. :) 
    randominternetpersonlolliverwatto_cobra
  • Reply 3 of 17
    I'm stating the obvious here...the symmetry in the Apple's product lines is most impressive...

    One 'consumer' iPad and 2 iPad Pro models.

    One 'consumer' MacBook (A marvel of engineering, BTW!) and 2 MacBook Pro's (Sorry, the MacBook Air and the MacBook Pro 'esc' don't count. Mainly b/c they don't fit my example.) 

    The iPhone Se and the 2 iPhone 7's.

    Simplicity, elegance and state of the art build quality. Apple has worked hard in the last couple of years to effect this.

    Oh, and the best selling smart watch in the world. :) 
    Plus, all of Apples phone and iPads will run AR programs... this has got to be the hottest thing coming.... and Apple is standing right in front of it!!!
    lolliverradarthekatwatto_cobra
  • Reply 4 of 17
    I'm stating the obvious here...the symmetry in the Apple's product lines is most impressive...

    One 'consumer' iPad and 2 iPad Pro models.

    One 'consumer' MacBook (A marvel of engineering, BTW!) and 2 MacBook Pro's (Sorry, the MacBook Air and the MacBook Pro 'esc' don't count. Mainly b/c they don't fit my example.) 

    The iPhone Se and the 2 iPhone 7's.

    Simplicity, elegance and state of the art build quality. Apple has worked hard in the last couple of years to effect this.

    Oh, and the best selling smart watch in the world. :) 
    Plus, all of Apples phone and iPads will run AR programs... this has got to be the hottest thing coming.... and Apple is standing right in front of it!!!
    Good point! :)
    radarthekatwatto_cobra
  • Reply 5 of 17
    geekmeegeekmee Posts: 454member
    AR; while everyone else is burdened with convincing buyers to purchase (expensive) hardware and software to experience AR,... Apple has sold the hardware and via AR Kit, and is just waiting for solutions to show up!!
    watto_cobra
  • Reply 6 of 17
    geekmeegeekmee Posts: 454member
    ...And with AR Kit, Apple is already there; while everyone else is burdened with convincing buyers to purchase (expensive) hardware and software to play around with AR,... Apple has already sold the hardware... And with AR Kit, Apple is just waiting for working solutions to show up!!
  • Reply 7 of 17
    mattinozmattinoz Posts: 1,516member
    geekmee said:
    AR; while everyone else is burdened with convincing buyers to purchase (expensive) hardware and software to experience AR,... Apple has sold the hardware and via AR Kit, and is just waiting for solutions to show up!!
    They really need to hummer that point when they talk ARKit. At launch say how many 100's of million devices will be ARkit capable if they update. When they talk about adoption of iOS 11 highlight how many are ARKit devices.
    radarthekatwatto_cobra
  • Reply 8 of 17
    colinngcolinng Posts: 115member
    I think the iPad Pro should sell very well, and iOS 11 is going to really make it shine. Education market should be really happy with the iPad. 

    I think it's we are on the cusp of it being practical to go Post-PC. 

    I don't have a compelling reason to replace my Mac mini 2012 Quad i7. If I had $2,000 for hardware I'd put it into a 12.9" iPad Pro with LTE. I know lots of others would say the new MacBook Pro is more suited for what I do (software development and running VMs), but if I had to choose between a new MacBook Pro or an iPad Pro, I'd gladly keep running things on my Mac mini, storing movies on my NAS as before, and get ultra portable with the iPad Pro.

    Remote Desktop fast enough, and low enough latency that it doesn't irritate me. Working Copy means I have my code repositories with me, and Textastic means I can edit code on my iPad. Push and let the CI system take care of compiling and running the Unit Tests.

    1.5 lbs and 10 hours of battery life, and the ability to Pencil things in? Sign me up! 
    radarthekatbrucemc
  • Reply 9 of 17
    SpamSandwichSpamSandwich Posts: 33,408member
    Oh, boy.

    After hours trading:  $159.50   +9.45   (6.30%)

    Tomorrow should see an all-time high for AAPL. They just destroyed their numbers. On a personal note, if the rise holds it'll be the biggest jump in my holdings since I've held stock (wiping away sweat from my brow). Thanks, Trump.
    edited August 2017
  • Reply 10 of 17
    radarthekatradarthekat Posts: 3,336moderator
    Oh, boy.

    After hours trading:  $159.50   +9.45   (6.30%)

    Tomorrow should see an all-time high for AAPL. They just destroyed their numbers. On a personal note, if the rise holds it'll be the biggest jump in my holdings since I've held stock (wiping away sweat from my brow). Thanks, Trump.
    Including the $1.32 in the regular market, Apple was up $10.77 by the close of the after-hours session.  I'm sitting on 7500 shares.  And August 1st was my 55th birthday.  What a nice gift.  Thanks, Tim and all the employees of Apple.  
    edited August 2017 watto_cobraspace2001
  • Reply 11 of 17
    SpamSandwichSpamSandwich Posts: 33,408member
    Oh, boy.

    After hours trading:  $159.50   +9.45   (6.30%)

    Tomorrow should see an all-time high for AAPL. They just destroyed their numbers. On a personal note, if the rise holds it'll be the biggest jump in my holdings since I've held stock (wiping away sweat from my brow). Thanks, Trump.
    Including the $1.32 in the regular market, Apple was up $10.77 by the close of the after-hours session.  I'm sitting on 7500 shares.  And August 1st was my 55th birthday.  What a nice gift.  Thanks, Tim and all the employees of Apple.  
    Well, Happy Birthday and happy early retirement!
    radarthekat
  • Reply 12 of 17

    So did Samsung make more money than Apple this quarter, or not?

    I'm thinking not, since it's all so quiet...

    watto_cobraradarthekat
  • Reply 13 of 17
    carnegiecarnegie Posts: 943member

    So did Samsung make more money than Apple this quarter, or not?

    I'm thinking not, since it's all so quiet...

    Yes, Samsung did.
    edited August 2017
  • Reply 14 of 17
    MacProMacPro Posts: 19,251member
    Oh, boy.

    After hours trading:  $159.50   +9.45   (6.30%)

    Tomorrow should see an all-time high for AAPL. They just destroyed their numbers. On a personal note, if the rise holds it'll be the biggest jump in my holdings since I've held stock (wiping away sweat from my brow). Thanks, Trump.
    Shame it will probably drop back this a.m. though (here's hoping it won't).  I look forward to the 1 Trillion mark.  Cannot be far off.  Loved the sarcasm at the end there, ROFL.  Yes despite the US literally having no functioning POTUS at present, Apple as always, regardless of politics, seems to keep that same growth graph extrapolation going and going ...  
    edited August 2017
  • Reply 15 of 17
    SpamSandwichSpamSandwich Posts: 33,408member
    MacPro said:
    Oh, boy.

    After hours trading:  $159.50   +9.45   (6.30%)

    Tomorrow should see an all-time high for AAPL. They just destroyed their numbers. On a personal note, if the rise holds it'll be the biggest jump in my holdings since I've held stock (wiping away sweat from my brow). Thanks, Trump.
    Shame it will probably drop back this a.m. though (here's hoping it won't).  I look forward to the 1 Trillion mark.  Cannot be far off.  Loved the sarcasm at the end there, ROFL.  Yes despite the US literally having no functioning POTUS at present, Apple as always, regardless of politics, seems to keep that same growth graph extrapolation going and going ...  
    That wasn't sarcasm at the end. If another Democrat had been elected, there's no way the stock market would be smashing through record after record right now.
    edited August 2017
  • Reply 16 of 17
    MacProMacPro Posts: 19,251member
    MacPro said:
    Oh, boy.

    After hours trading:  $159.50   +9.45   (6.30%)

    Tomorrow should see an all-time high for AAPL. They just destroyed their numbers. On a personal note, if the rise holds it'll be the biggest jump in my holdings since I've held stock (wiping away sweat from my brow). Thanks, Trump.
    Shame it will probably drop back this a.m. though (here's hoping it won't).  I look forward to the 1 Trillion mark.  Cannot be far off.  Loved the sarcasm at the end there, ROFL.  Yes despite the US literally having no functioning POTUS at present, Apple as always, regardless of politics, seems to keep that same growth graph extrapolation going and going ...  
    That wasn't sarcasm at the end. If another Democrat had been elected, there's no way the stock market would be smashing through record after record right now.
    Mmmm... I assume you were in a cryogenic freezer when the economy was wrecked by the last Republican administration and the recover, rather like the Apple graph slowly but surely went upwards for the last eight years?
  • Reply 17 of 17
    SpamSandwichSpamSandwich Posts: 33,408member
    MacPro said:
    MacPro said:
    Oh, boy.

    After hours trading:  $159.50   +9.45   (6.30%)

    Tomorrow should see an all-time high for AAPL. They just destroyed their numbers. On a personal note, if the rise holds it'll be the biggest jump in my holdings since I've held stock (wiping away sweat from my brow). Thanks, Trump.
    Shame it will probably drop back this a.m. though (here's hoping it won't).  I look forward to the 1 Trillion mark.  Cannot be far off.  Loved the sarcasm at the end there, ROFL.  Yes despite the US literally having no functioning POTUS at present, Apple as always, regardless of politics, seems to keep that same growth graph extrapolation going and going ...  
    That wasn't sarcasm at the end. If another Democrat had been elected, there's no way the stock market would be smashing through record after record right now.
    Mmmm... I assume you were in a cryogenic freezer when the economy was wrecked by the last Republican administration and the recover, rather like the Apple graph slowly but surely went upwards for the last eight years?
    You're only telling a fraction of the whole story, but I'd rather this thread didn't get locked for going too far off topic. Let's just agree to disagree and move on. 😉
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