Stronger than expected Apple iPhone sales help Apple top Q3 earnings estimate

Stronger than expected Apple iPhone sales help Apple top Q3 earnings estimate
Surprising Wall Street with a strong quarter of Apple iPhone sales, Apple reported stronger than expected fiscal third quarter earnings leading to a 4% pop in after-hours trading on Tuesday. Apple sold 31.2 million units of the iPhone, topping estimates of 26.5 million phones that analysts had expected Apple to report. Last quarter, Apple sold 37.4 million units of its iconic smartphone, while last year it sold 26 million in the same period. After-hours, Apple's shares are up $21.80 to $440.79 after dropping over $7 during regular trading hours.

While analysts had expected Apple to sell 18 million units of the Apple iPad in Q3, Apple actually rang up sales of 14.6 million tablets. That was down sequentially from the 19.5 million sold last quarter and down from the 17 million it sold last year during the same three month period.

For the quarter, Apple reported a profit of $6.9 billion or $7.47 a share. That topped an estimate of Wall Street analysts by 15 cents a share. Last year, the company reported third quarter profits of  $8.8 billion or $9.32 a share. Revenue came in at $35.3 billion for 2013, up from $35 billion last year. Apple forecast that it will produce revenue in the range of $34 billion to $37 billion for the fiscal fourth quarter. Analysts expect Apple to report $37 billion in revenue for the period.

Apple CEO Tim Cook once again hinted at a Apple iWatch when he mentioned that new products are on the way. "We are laser-focused and working hard on some amazing new products that we will introduce in the fall and across 2014," said Cook after Apple reported its earnings. Apple recently filed to trademark the iWatch name in various countries. A recent report stated that an Apple iWatch release has been delayed as Apple has hired more engineers to help them get to the next level in designing the product.


source: WSJ

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46 Comments

1. Ninetysix

Posts: 2962; Member since: Oct 08, 2012

Good job Apple. Make it more interesting next quarter. Competition = good for us consumers.

10. darkkjedii

Posts: 30971; Member since: Feb 05, 2011

Agreed 100%

2. karim77

Posts: 70; Member since: Dec 10, 2012

Well, this is surprisingly weird

17. darkkjedii

Posts: 30971; Member since: Feb 05, 2011

How's it weird?

37. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

It's not surprising that still plenty of Apple fans around the globe. Their unwavering devotion is almost religious! I can't bad mouth Apple products they would crucify you if they could. Common sense is rare unless it's serve to glorify their Apple love and ego.

3. Johnnokia

Posts: 1158; Member since: May 27, 2012

Q3 2010 Nokia revenue was 43 $Billion..... ูููAnd now it is only 7.5 $Billion ... Really sad.

7. smallworld

Posts: 517; Member since: Jul 13, 2012

43 Billion... in one quarter... Nokia... I don't think sooo

30. mctcm

Posts: 204; Member since: Oct 19, 2011

Um, no. They did 10.3 bln euro's in 3Q10 which is no more than 14.5-15.5bln USD, depending on the FX conversion which I can't be bothered to look up.

4. Googler

Posts: 813; Member since: Jun 10, 2013

Eyes should be on the upcoming iPhone sales, it makes up close to 50% of total Apple profit. Any word on what impacted the $2 billion profit drop?

21. greathero1

Posts: 584; Member since: Jun 13, 2008

Probably iPad sales. They were lower this go around.

26. Googler

Posts: 813; Member since: Jun 10, 2013

It would be interesting to know the stats on how the Mini impacted profits when compared to sales.

5. livyatan

Posts: 867; Member since: Jun 19, 2013

Apple profit -6.9 billion Samsung profit - 8.5 billion

6. christianqwerty

Posts: 467; Member since: May 05, 2011

iPhone vs galaxy s4, s4 activ, s4 mini, galaxy zoom, galaxy core, galaxy express, galaxy steller, samsung activ odessy, Samsung lightray, samsung stratosphere , ECT.......

13. tedkord

Posts: 17312; Member since: Jun 17, 2009

Ok then... IPhone 5 Q2 sales - 22 million Galaxy S4 Q2 sales - 23 million Good enough?

20. greathero1

Posts: 584; Member since: Jun 13, 2008

Not really. 10 month old phone at the end of its life cycle vs brand new product. I say, not bad. Kudos to both for racking up great numbers.

24. darkkjedii

Posts: 30971; Member since: Feb 05, 2011

Best post out the bunch. +1

27. Googler

Posts: 813; Member since: Jun 10, 2013

Apple is still selling the iPhone 4, how is the 5 near the end of it's life cycle?

40. willard12 unregistered

In all fairness they are only selling the iphone 4 until next month....before the ITC bans it for copying.

25. darkkjedii

Posts: 30971; Member since: Feb 05, 2011

Ted, since when did you get into this who sold most thing? That's fanboy stuff dude, you've always struck me as a techie.

32. tedkord

Posts: 17312; Member since: Jun 17, 2009

I don't care who sells what. I was just correcting what someone said.

36. darkkjedii

Posts: 30971; Member since: Feb 05, 2011

Oh ok

19. greathero1

Posts: 584; Member since: Jun 13, 2008

Don't concentrate so much on phones. Samsungs other business had a big impact on their profit as well. TVs, appliances, etc.

44. designerfx

Posts: 76; Member since: Mar 26, 2013

means nothing. you're distracting from the reality of : apple's profits going down (having reached a plateau already). Apple *does* have to compete against all of those. That's what competition is.

8. verbalize

Posts: 150; Member since: May 03, 2013

Who said the High-end smartphone Industry is saturated? Good going Apple. When you have a great product people will buy it. With Samsung's poor phone sales this last quarter they better pick up their game or they're going down the drain.

14. tedkord

Posts: 17312; Member since: Jun 17, 2009

Poor sales? They sold more than twice as many smartphones as Apple, the GS4 outsold the iPhone 5, and they had a record quarter with more profit than Apple. We should all do so poorly.

18. Jason2k13

Posts: 1460; Member since: Mar 28, 2013

i dont remember any of samsungs high-end phone having poor sales? Even their low and mid phones sells more than any other manufacturers in that category.

23. stealthd unregistered

S4 didn't sell BAD, but it was below expectations

33. tedkord

Posts: 17312; Member since: Jun 17, 2009

It sold 20 millIon in two months. That's just not bad? It looks like it outsold the iPhone 5 for the quarter, and it only had two months of the three while the iPhone had all three.

39. verbalize

Posts: 150; Member since: May 03, 2013

And the IPhone is almost a year old. Then you have the SG4 that's been out for 11 weeks and they sold less phone of it in the same period. The SG4 is already Discounted for $99 with contract. Can't be selling Too we'll if they are almost giving it away with contract. LOL

41. tedkord

Posts: 17312; Member since: Jun 17, 2009

I'll repeat it. 20 million in two months. If that's not selling well, nothing sells well.

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