Apple beats Wall Street expectations, offers strong guidance ahead of new iPhone
This afternoon Apple reported quarterly revenues of $45.4 billion, which beat Wall Street expectations. Earnings per share also beat expectations by $0.10. Revenues were up 7 percent year-over-year, while earnings were up 17 percent.
Most significantly for investors, the company offered higher-than-expected guidance ($49 – $52 billion) for the fourth quarter, anticipating the release of the new iPhone.
Here are device numbers:
- iPhones: 41 million, $24.8 billion in revenue
- iPad: 11.4 million units, $4.9 billion in revenue (up 15 percent)
- Macs: 4.3 million units, $5.6 billion in revenue
- Services (including Apple Pay, Apple Care): $7.3 billion in revenue
- Other (including Apple TV, Apple Watch, Beats products): $2.7 billion in revenue
Apple said it saw growth in every product category. Mac, iPad and Sales of Apple Watch were up, the latter over 50 percent. The company also said that demand for AirPod earphones continues to exceed supply, getting 98 percent customer satisfaction scores according to third party surveys.
Apple CEO Tim Cook said that the release of iOS 11, will make iOS the largest augmented reality platform in the world. It also claimed that the App Store generated 2X the revenue of Google Play. The company also said that “three out of four Apple Play transactions happen outside the US.”
Apple said it has now more than $260 billion in cash and short term investments. Investors reacted positively to the news, sending the company’s shares up in after-hours trading.
This year is the 10-year anniversary of the introduction of the iPhone, which together with Android changed digital marketing forever — Facebook recently reported that nearly 90 percent of its ad revenues were mobile — though many marketers were slow to recognize its impact. Indeed, many marketers are still adapting to a mobile-first consumer audience.
Excerpts from questions and answers on the earnings call:
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