Apple topped earnings and revenue estimates
Apple (AAPL) pleasantly surprised the markets by delivering good numbers in fiscal 3Q17 (ended in June), which is typically its worst quarter. The iPhone maker reported those earnings on Tuesday, August 1, 2017, and beat Wall Street expectations. Its revenue topped the estimates as well. Apple now has a staggering $261.5 billion in cash or cash equivalents.
Net income for 3Q17 rose 12.0% YoY (year-over-year) to $8.7 billion. That represents the technology giant’s second consecutive rise in profits after slumping for a year. EPS (earnings per share) came in at $1.67 against analysts’ expectation of $1.57.
Why Apple could launch the iPhone 8 in September
Apple registered quarterly revenues of $45.4 billion against Wall Street’s estimate of $44.9 billion. That’s a 7.2% rise compared to revenues in the same quarter last year. It was the best revenue growth the company has seen in seven quarters. Apple expects 4Q17 revenues to come in between $49.0 billion and $52.0 billion, which could mean the much-hyped iPhone 8 could be released in September.
The Cupertino, California–based company is likely to release three phones instead of the typical two. It may release updated versions of the iPhone 7s and 7s Plus as well as what is likely to be dubbed the iPhone 8. The latter will come with an edge-to-edge display and features such as facial recognition and wireless charging technology.
While the company doesn’t break out sales of the Apple Watch, CEO (chief executive officer) Tim Cook mentioned in the conference call that Apple Watch sales rose 50.0% YoY. Services, including Apple Music and its App Store, saw revenues of $7.3 billion, which was a 22.0% rise YoY.
On August 1, 2017, Apple stock hit its all-time high after rising 6.2% in after-hours trading. In the following parts of this series, we’ll take a look at the company’s iPhone, Mac, and iPad sales as well as its revenues in China.