Apple posts strong $45.4 billion in revenue on growing sales of 41 million iPhones
Apple again saw its sales grow year over year in the June quarter, the company revealed on Tuesday, with $45.4 billion in revenue exceeding Wall Street expectations, again driven by strong iPhone sales, but also growth in its iPad and Mac businesses.
Apple's quarterly earnings per diluted share for third fiscal quarter of 2017 were $1.67. iPhone sales for the period reached 41 million, up from 40.4 million the year prior.
That was in comparison to market expectations of $44.9 billion in revenue and 40.8 million iPhone sales for the three-month span, allowing Apple to beat market projections.
iPad sales were also strong in the quarter, reaching 11.4 million units. Apple launched three new iPad models this year, including two new iPad Pros in the June quarter.
The 11.4 million iPad sales were up from 10 million a year ago, and 8.9 million in the preceding March quarter.
As for the Mac, sales were 4.3 million, up slightly from the same period in 2016. Sales of the Mac were also up from 4.2 million in the March 2017 quarter.
Mac sales were also bolstered by new MacBook Pros, MacBook Airs and iMacs that debuted at Apple's annual Worldwide Developers Conference in June.
In all, earnings per share grew 17 percent year over year, from $1.42 in the year-ago quarter. International sales accounted for 61 percent of the quarters' revenue, and gross margin was 38.5 percent.
"With revenue up 7 percent year-over-year, we're happy to report our third consecutive quarter of accelerating growth and an all-time quarterly record for Services revenue," Apple Chief Executive Tim Cook said. "We hosted an incredibly successful Worldwide Developers Conference in June, and we're very excited about the advances in iOS, macOS, watchOS and tvOS coming this fall."
While investors are likely to be pleased with the strong performance by Apple in the June quarter, all eyes are now focused squarely on the current September frame, during which the company is expected to unveil its next-generation iPhones. However, if they do launch in the quarter, it likely won't be until the very end, having a relatively small impact on the period.
For its fiscal 2017 fourth quarter, Apple provided the following guidance:
Apple's board of directors also declared a cash dividend of $0.63 per share of the company's common stock. The dividend is payable on Aug. 17 to shareholders of record as of the close of business on Aug. 14.
Apple's quarterly earnings per diluted share for third fiscal quarter of 2017 were $1.67. iPhone sales for the period reached 41 million, up from 40.4 million the year prior.
That was in comparison to market expectations of $44.9 billion in revenue and 40.8 million iPhone sales for the three-month span, allowing Apple to beat market projections.
iPad sales were also strong in the quarter, reaching 11.4 million units. Apple launched three new iPad models this year, including two new iPad Pros in the June quarter.
The 11.4 million iPad sales were up from 10 million a year ago, and 8.9 million in the preceding March quarter.
As for the Mac, sales were 4.3 million, up slightly from the same period in 2016. Sales of the Mac were also up from 4.2 million in the March 2017 quarter.
Mac sales were also bolstered by new MacBook Pros, MacBook Airs and iMacs that debuted at Apple's annual Worldwide Developers Conference in June.
In all, earnings per share grew 17 percent year over year, from $1.42 in the year-ago quarter. International sales accounted for 61 percent of the quarters' revenue, and gross margin was 38.5 percent.
"With revenue up 7 percent year-over-year, we're happy to report our third consecutive quarter of accelerating growth and an all-time quarterly record for Services revenue," Apple Chief Executive Tim Cook said. "We hosted an incredibly successful Worldwide Developers Conference in June, and we're very excited about the advances in iOS, macOS, watchOS and tvOS coming this fall."
While investors are likely to be pleased with the strong performance by Apple in the June quarter, all eyes are now focused squarely on the current September frame, during which the company is expected to unveil its next-generation iPhones. However, if they do launch in the quarter, it likely won't be until the very end, having a relatively small impact on the period.
For its fiscal 2017 fourth quarter, Apple provided the following guidance:
- revenue between $49 billion and $52 billion
- gross margin between 37.5 percent and 38 percent
- operating expenses between $6.7 billion and $6.8 billion
- other income/(expense) of $500 million
- tax rate of 25.5 percent
Apple's board of directors also declared a cash dividend of $0.63 per share of the company's common stock. The dividend is payable on Aug. 17 to shareholders of record as of the close of business on Aug. 14.
Comments
Not.
2) Cook proves once again that AAPL is undervalued by Wall Street and he's underpaid.
52 billion on the high end.
Up from 45 billion this past quarter.
How is that a "relatively small impact on the period"? Surely this includes some new iPhone launch revenue?
it’s good guidance for next quarter, though how much of it is due to expected increases in iPad sales rather than an on time iPhone 8, I don’t know. How much Apple will relate to us during the conference call starting in 5 minutes, I don’t know. Hopefully I’ll find out during the call.
Apple is D00M3D!!1! </obligatory>
Of course, we still haven't seen the latest iPhone Killer (This time for sure!) from Samsung. No doubt that will rock Apple to its core, tainting the almost certain continued growth in iPhone sales.
Q4 2016 was $46.9 billion so Apple is certainly expecting some growth in revenue. Some of that will be on-going increases in services revenues but clearly some is from new products. If we assume it is iPhone related, Apple either expect it to do better than the iPhone 7 or they plan to launch earlier to get more sales into the quarter. One thing it hopefully suggests is that there won't be a delay or shortage of phones at launch.
iPhone unit sales for the quarter aren't anything to write home about either. While it isn't a drop like last quarter, the number of units only increased 1.5% from the same quarter last year. When compared to 3rd quarter 2015 though, sales have dropped from 47.5 million to 41 million which is a 13.7% decreased. Revenue in 2015 was also quite a bit higher at $49.6 billion.
Basically 2017 was slightly better than 2016, but it is substantially worse than 2015 when the iPhone 6 was out.
but my thinking here is that with iPad sales up over 14%, a big part of that optimistic quidance could be to that, rather than whether the iPhone 8 is delayed, or not. So it’s still hard to tell. I could not gather anything from the conference call about that, as expected.
Consecutive quarters are compared for the trend line. If the trend is different, then that’s important. It’s understood that each quarter is different.