March 21 2018

Apple reports $45.4 billion in revenue, up 7 percent from previous year

March 21 2018, 10:12 | Geraldine Moore

Apple reports $45.4 billion in revenue, up 7 percent from previous year


Apple shares closed at $150.05 on Tuesday, up about 0.9% for the day, and traded at around $157.72, up about 5.1%, in the after-hours session and a new high if it holds in Wednesday's trading.

Ahead of Tuesday's report, Apple shares had gained more than 28% this year, bringing its market cap to north of $770 billion making it the world's largest publicly traded company.

Cook, meanwhile, described the decline in current iPhone sales as a "pause" while users wait for the latest iPhone. Apple sold 40.4 million iPhones a year earlier. Apple's projections for its next quarter of earnings would indicate a big iPhone launch this coming September.

Given that the third quarter reports exceeded expectations and came in at $45.4 billion, there's a good chance Apple's on target for the fourth quarter and those delay rumors will be squashed. Analysts had been modeling sales of $44.89 billion and income of $1.57 per share, so that comes out to a beat of both fronts.

IPad sales finally got back on track after Apple released a number of new models, including a 10.5-inch iPad Pro and a new, cheaper iPad starting at only $329. Perhaps a hot iPhone launch will help. That means they tend to have only a small impact on Q4 earnings.

Apple has announced its financial results for their fiscal third quarter of 2017.

In an earnings call, Cook detailed that sales in the education market were up 32 percent year-over-year at almost 1 million units.

The company credited its efforts to sell more to schools.

Compared to the company's third fiscal quarter 2016, this year's Q3 saw a big increase in iPad sales at 11.42 million units versus last year's 9.95 million; Mac sales also increased year-on-year, but very slightly at 4.292 million versus last year's 4.252 million. Analysts had forecast revenue to be $50.2 billion for the quarter ending in September.

Everything wasn't ideal. Apple's sales in China, once the company's growth engine, continued to shrink, with revenue dropping 10% to $8 billion.

"Apple Sales Rise, Pushed by Sales of iPads and Macs", at 4:35 p.m. EDT, incorrectly stated the sales quarter in the first paragraph.

But Apple's "Other Products" category - which includes the Apple Watch, wireless AirPods earbuds and Apple TV - was its fastest growing segment, percentage-wise, last quarter, with 23 percent year-over-year growth.

"The decline from a market standpoint was concentrated in Hong Kong, which is a place that has been really affected by a reduction in tourism because the Hong Kong Dollar is pegged to the US dollar", Maestri said.

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