Ap­ple’s Q3 earn­ings soar

Boom­ing iPad sales boost re­sults, re­ports Michael Si­mon

Macworld - - Contents -

N o new iPhone, no prob­lem for Ap­ple’s bot­tom line. The com­pany just re­ported its third quar­ter re­sults for fis­cal year 2017 and they’re aw­fully good: $8.7 bil­lion profit, or $1.67 per share, on rev­enue of $45.4 bil­lion.

That breaks down to 41 mil­lion iPhones, a slight in­crease from the third quar­ter of 2016, when Ap­ple moved more than a lit­tle more than 40 mil­lion

hand­sets. Sales were down when com­pared to last quar­ter’s 50.7 mil­lion, how­ever.

But the big sur­prise was the iPad. On the back of the new 10.5in iPad Pro re­leased at WWDC in June, Ap­ple moved 11.4 mil­lion tablets, its big­gest non-hol­i­day quar­ter for the tablet in more than two years. That’s an in­crease of nearly 30 per­cent from last quar­ter and 15 per­cent from Q3 2016. How­ever, rev­enue from tablet sales was only up 2 per­cent, sug­gest­ing peo­ple may be opt­ing for cheaper mod­els. Ap­ple’s stock spiked more than 5 per­cent on the news.

The quar­ter end­ing June 30 also saw re­leases of new MacBooks and iMacs, but the new prod­ucts didn’t have as much of an ef­fect on Ap­ple’s bot­tom line. Dur­ing the pre­vi­ous three months, Ap­ple moved 4.3 mil­lion Macs, roughly the same as it sold last year.

Ap­ple CEO Tim Cook high­lighted Ap­ple’s Ser­vices rev­enue, which pulled in $7.3 bil­lion, an in­crease of 22 per­cent from the same quar­ter last year and a record high: “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,” he revealed.

In a con­fer­ence call, Cook praised Ap­ple’s re­sults, say­ing the com­pany en­joyed growth in all prod­uct cat­e­gories. In par­tic­u­lar, the iPhone 7 was a strong per­former, with sales of the Plus model up “dra­mat­i­cally” over the same quar­ter last year and show­ing “strong dou­ble-digit growth” for the

fam­ily. Con­se­quently, the iPhone’s av­er­age selling price in­creased to £650.

He also spot­lighted iPad sales, say­ing more than half of cus­tomers were buy­ing their first Ap­ple tablet. Ad­di­tion­ally, the Mac was a big hit in China and Ja­pan, with the two coun­tries post­ing record unit sales.

While Ap­ple doesn’t break out its watch sales, Cook said sale were up over 50 per­cent year over year. Look­ing ahead to the fourth quar­ter, Ap­ple ex­pects rev­enue be­tween $49 bil­lion and $52 bil­lion, sug­gest­ing the usual iPhone launch to­ward the end of Septem­ber.

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