Apple barely tops iPhone sales forecast for fiscal Q3; shares hit record high after hours

Apple barely tops iPhone sales forecast for fiscal Q3; shares hit record high after hours
Apple this afternoon, reported sales of 41.03 million units of the Apple iPhone for the company's fiscal third quarter. That narrowly beat Wall Street expectations of 40.7 million handsets forecast to be sold during the period. Year-over-year, the sale of iPhone units rose 2% for the fiscal third quarter, 3% if comparing revenue. On a sequential basis, 19% fewer iPhone units were sold during the fiscal third quarter compared to the fiscal second quarter. On a revenue basis, sequential sales declined 25%.

Adjusted earnings per share for the entire company rose to $1.67, which topped the Wall Street consensus forecast of $1.57 a share. At $45.4 billion in revenue, Apple beat the $44.89 billion top line figure that brokerage firms were expecting.

Giving out some clues about the 10th anniversary iPhone dubbed the Apple iPhone 8, the company predicts overall corporate sales of $49 billion to $52 billion for the fiscal fourth quarter, which could include a small portion of iPhone 8 sales. In addition, during the same period Apple expects to see its profit margins in a range between 37.5% and 38%. That would be below the 38.3% predicted by Wall Street analysts.

The iPad had a very good three month period. Apple recorded shipments of 11.42 million iPad slates that were shipped during the fiscal third quarter, a 26% increase over the previous year's 9.02 million shipments. On a sequential basis, the iPad saw both its revenue and the number of units shipped both rising 28% from the fiscal second quarter to the fiscal third quarter. The others section, which includes sales of Apple TV, Apple Watch, Beats products, iPod and Apple-branded and third-party accessories, saw its revenue rise 23% year-over-year.

For the current fiscal fourth quarter, Apple forecasts the following:

  • 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 shares have responded by rising after hours by more than 5% to over $157, a new record for Apple. The company now has the largest cash hoard in history numbering $261.5 billion, and voted a dividend of 63 cents for each common share holder. The payment will be made on August 17th to holders of record as of the close on August 14th.

The latest on the Apple iPhone 8 states that the device is expected to come with an OLED panel, and possibly use face recognition to unlock the device and to verify information. The phone could cost as much as $1,200, and should feature an edge-to-edge display.

source: Apple



114. Ozsikhs

Posts: 58; Member since: Sep 03, 2015

no surprise

108. Trex95

Posts: 2400; Member since: Mar 03, 2013

iPhone sell well for 3 reasons Update Customer service Cheap repair

111. ColinW

Posts: 413; Member since: Jun 04, 2014

Customer service is not great outside of major areas like the US and they are definitely more expensive to repair than most phones!

113. khanhbee90

Posts: 17; Member since: Sep 03, 2015

Really cheap repair from Vietnam (not US). In my country, every shops (even not official Apple Store) warranty 1 year of replacing new...

105. PhoneCritic

Posts: 1382; Member since: Oct 05, 2011

No doubt about it, Apple is a well oiled machine and knows how to run their business for Maximum profits. I just wish they had a backbone when it comes to China. But that aside a good Job by Apple.

97. cnour

Posts: 2305; Member since: Sep 11, 2014

Excellent news concerning iPad. Good strategy Apple....

93. slow00

Posts: 97; Member since: Mar 08, 2017

no surpises ipad sales and iphone BOGO deals helped apple to post these results, considering china 's steep decline...i am really sceptical about the forthcoming iphone 8 supercycle. i dont believe such thing gonna happen in a similar scale to 2015 especially if the rumors about the iphone 8 price tag proove to be true

91. TerryD

Posts: 566; Member since: May 09, 2017

So shares are worth $157 and each share earns 63 cents in dividends? Thats 0.4%, kind of a pathetic return on your investment.

88. trojan_horse

Posts: 5868; Member since: May 06, 2016

Yeah and it isn't the first time PA does tha. There was a hot comment section of an Apple article in which PA got rid of a whopping 130 comments. Heck, here is the Apple article in question: It was crazy, man.

90. slow00

Posts: 97; Member since: Mar 08, 2017

however what makes this site a joy is the comments section and its sad such things happening...

92. trojan_horse

Posts: 5868; Member since: May 06, 2016

Me too. The comment section is what makes me keep coming back to this site. There really isn't a freedom of speech here, with PA censoring any and everything.

94. slow00

Posts: 97; Member since: Mar 08, 2017

this...what makes this site popular is the readers and their vivid conversations...tbh phonearena is more a "news aggregator" site and less a news and opinion platform who screams "originality". With most of the staff based in Bulgaria you can hardly expect any better..Thats why keeping a loyal community is so important.

87. slow00

Posts: 97; Member since: Mar 08, 2017

wow...phonearena butchered at least 90% of the comments...

84. Pureviewuser1

Posts: 170; Member since: Mar 28, 2016

Although very good devices i dont like iphones however i like the fact tjat theyre not doing the curved screen which imho is crap.

79. therealestboy

Posts: 82; Member since: May 03, 2013

Apple as always is on top of the world. They really know how to make devices people want to buy. I am definitely getting the next iPhone if the leaks are correct.

66. Monty007

Posts: 49; Member since: Mar 21, 2017

Apple fanboys :D

14. diggie32

Posts: 388; Member since: Apr 03, 2016

iPhones are built to last and wear like iron, or nice leather. Several years of service is the standard.

107. coldspring22

Posts: 349; Member since: Feb 28, 2015

Not really, my wife's iphone 5 broke a long long time ago, gathering dust in a drawer. Meanwhile, Samsung Galaxy Note 2 bought around same time is still in daily use running like a champ with multi-day extended battery!

109. diggie32

Posts: 388; Member since: Apr 03, 2016

Gosh, I guess since your wife had that one experience, the standard is no more. Meanwhile my wifes 5 is still kicking and she got it at launch. Even through all the abuse from 3 kids playing with it.

110. ColinW

Posts: 413; Member since: Jun 04, 2014

Not my experience after 6 iPhones and 3 iPod Touches. Durability is not one of the iPhones strengths nor reliability either.

9. darkkjedii

Posts: 31809; Member since: Feb 05, 2011

No surprise here. Apple is a beast of a company, and knows how to market and get paper. I'm shocked, they haven't hit 1 trill yet TBH.

86. sgodsell

Posts: 7679; Member since: Mar 16, 2013

Alan iPhones rose more like 1.4% and not 2%. If you are going to report it, then get it right.

106. coldspring22

Posts: 349; Member since: Feb 28, 2015

The real news is Apple iphone is now down to 11.4% of global market share! Android manufacturers expanded sales at rapid clip, while Apple basically stood still. Looking for iphone global market share to dip into single digits in next couple of years

112. khanhbee90

Posts: 17; Member since: Sep 03, 2015

Android manufacturers expanded sales of cheap phone market, when poor people had chances to start using smartphone. iPhones are always just flagships. Different costumers :)

* Some comments have been hidden, because they don't meet the discussions rules.

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