Tuesday was an important day for Apple as the company announced its earning results yesterday afternoon after the market closed.
Apple saw a better-than expected third quarter for its iPhone sales which were up 6 percent. The company was able to sell more iPhones this quarter than expected, bringing the total to 41 million units sold beating out the 40.7 million analysts predicted earlier.
Apple’s shares were more than 5 percent, reaching over $157 in extended trading. The company was also able to earn $45.4 billion in revenue which is more than the expected $44.89 billion and a quarterly earning per diluted share of $1.67, up from $1.42 a year ago. The company’s international sales accounted for 61 percent of the revenue.
iPhone sales weren’t the only thing that grew this quarter, the Cupertino company was able to break another record with its Services division which includes Apple Pay, Apple Watch, and the App Store.
“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,” said Tim Cook, Apple’s CEO. “We hosted an incredibly successful Worldwide Developers Conference in June, and we’re very excited about the advances in iOS, macOS, watchOS and tvOS coming this fall.”“We reported unit and revenue growth in all our product categories in the June quarter, driving 17 percent growth in earnings per share,” said Luca Maestri, Apple’s CFO. “We also returned $11.7 billion to investors during the quarter, bringing cumulative capital returns under our program to almost $223 billion.”
It was reported the company shipped 11.42 million iPads which is well above the 9.03 million estimated, while Apple’s Mac sold 4.29 million below the 4.33 million units estimated.
Looking ahead, Apple is expected to have a strong September quarter thanks to the launch of its new devices. Apple says to expect a quarter revenue between $49-52 billion, a gross margin between 37.5 and 39 percent, operating expenses between $6.7 and $6.8 billion, a tax rate of 25.5 percent and other income/expense of $500 million.
Come comment on this article: Q3 Earnings Are In: Apple’s iPhone Sold More Units Than Expected