Apple reports strong gain in services, wearables and iPhone revenue in fiscal Q3; stock soars 4%

Apple took a giant leap toward becoming the first public company worth one trillion dollars after the company's shares soared after hours. The rally came after Apple reported its earnings for the third fiscal quarter, which included the three month period from April through June. Even though sales of the Apple iPhone rose less than 1% to 41.3 million for the quarter (slightly under Wall Street estimates), revenue attributed to the device rose a strong 20% year-over-year to $29.91 billion. That was due to a 20% rise in the Average Selling Price for the iPhone, to $724. The strong gain in ASP indicates strong sales of the premium priced iPhone X. In fact, one out of every four iPhone units sold in the quarter was the tenth anniversary model.

However, according to Strategy Analytics, Huawei topped Apple with shipments of 54 million smartphones in the period. That means that globally, Apple was the third largest smartphone manufacturer during the quarter, with Samsung remaining on top.

What really got the stock moving was Apple's forecast for the current quarter. The company expects to see iPhone sales from July through September rise by 14% to 18% which would indicate sales between $60 billion and $62 billion for its most important product. In September, Apple expects to unveil three new models, which explains the strong forecast. We should see a 5.8-inch iPhone X sequel and a 6.5-inch iPhone X Plus, both with OLED panels. A third iPhone will feature a 6.1-inch LCD display and is expected to be named the iPhone 9. This will be the most affordable of the three 2018 iPhones.

The division that includes the Apple Watch and the AirPods wireless ear buds saw revenue increase 37% to $3.74 billion. The company doesn't breakdown individual Apple Watch sales, but research firm IDC expects Apple to ship 20.2 million timepieces this year for a gain of 20.2% over last year's figure. The Apple iPad continues to feel the heat from weaker demand for tablets; sales of the device declined by 5% in the fiscal third quarter. During the period, 11.5 million iOS tablets were sold.

Another area that did quite well for Apple was its burgeoning services business. Apple has a goal of hitting $50 billion in sales by 2020, and for the quarter Apple reported services revenue of $9.55 billion, up 31%. This division includes Apple Music, which overtook global streaming music leader Spotify in paid U.S. subscribers during the quarter.

Overall, Apple reported higher growth in revenue for the 17th straight quarter with sales hitting $53.27 billion. That was a gain of 17%, topping Wall Street's expectations and Apple's own internal forecast. Profit also topped Wall Street forecasts coming in at $11.52 billion or $2.34 a share.

After hours, investors rewarded Apple by pushing the stock higher by $7.66 to $197.95, a gain of 4.03% We could see Apple soon win the race to a trillion dollar valuation, becoming the first public company ever to be valued that high.

source: WSJ, CNBC



1. Phullofphil

Posts: 1823; Member since: Feb 10, 2009

It’s amazing and weird but not really unexpected

3. Finalflash

Posts: 4063; Member since: Jul 23, 2013

It is surreal though, to see all these almost trillion dollar companies. Apple, Alphabet, Amazon, Microsoft, all making more money than ever before. They're all getting there while value and worker pay keeps going down. The next recession is due any month now, wonder what the trigger will be, and how catastrophic it will be because of how much money is in the financial system now compared to last time.

5. Phullofphil

Posts: 1823; Member since: Feb 10, 2009

Your so right but these companies are not really the problem. It’s not of the Walmart’s, the Koch brothers, any body who believes in trick down economics of some form, disinformation from political powers, and us people that let it happen. Money worth less pay staying the same or mostly is another way to take our money

2. Hollowmost

Posts: 424; Member since: Oct 10, 2017

Apple is ready to commit its final suicidal move , R.I.P

4. Phullofphil

Posts: 1823; Member since: Feb 10, 2009

Oh yeah what is that........troll

15. Y.S.L..

Posts: 232; Member since: Jul 03, 2018

Apple is a status brand. When you see the prices of the unsubsidized phones approaching $1,000 and realize that a lot of folks spend less on their cars then on their iPhones, now you realize that many, if not most, are buying Apple for the brand. And there are far more people who get excited about brands than those that get excited about technology. However one of the things that can damage a brand tied to status over time is the slow bleed of visible, low status buyers using a product.

6. toukale

Posts: 652; Member since: Jun 10, 2015

LOL Apple is doomed, doomed I tell you lol /s.

7. cmdacos

Posts: 4267; Member since: Nov 01, 2016

Strong results and very likely will propel them to be the second trillion dollar publicly traded company. Doubt Amazon will catch up in time although Amazon will do it bbn in a much faster timeline.

9. therealestmc

Posts: 679; Member since: Jul 23, 2012

Apple is killing it, and the haters are hating.

10. ijuanp03

Posts: 616; Member since: Dec 30, 2014

you are the reason why Apple is making more money by buying more expensive Apple products. Good job to Apple for fooling you! :)

11. kiko007

Posts: 7518; Member since: Feb 17, 2016

Bitch who do you think you are telling people what to buy with their money?

12. Phullofphil

Posts: 1823; Member since: Feb 10, 2009

And because Apple sells there phone for more is why you pay more for yours. Because the compitition sells there phones for just a little bit less and always has a deal. Nobody a fool as much as you are.

30. iPhoneFanboy

Posts: 286; Member since: Apr 21, 2018

me too! /waves :D

13. L0n3n1nja

Posts: 1579; Member since: Jul 12, 2016

The thing that amazes me most isn't that they keep selling more iPhones, it's the fact they keep rising prices for record profits while people keep buying the phone in record numbers. You would think people would say enough is enough and not spend over $1000 on a phone, but Apple proved the market is willing to keep paying more for the newest.

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

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