1A Look Inside Apple’s Surprising Third-Quarter Earnings Report
Apple’s fiscal third-quarter earnings report, released Aug. 1, dispelled much of the worry about declining iPhone, iPad and Mac sales. Apple sold 41 million iPhones, and iPad sales jumped a surprising 15 percent to 11.4 million. But that wasn’t all Apple revealed in its earnings. The company also noted its cash hoard is growing rapidly and its Services operation, which includes Apple Music and the App Store, is now its second-largest division behind the iPhone. Although much of the report was positive, Apple acknowledged continued weakness in its important Greater China market. This eWEEK slide show will discuss the highlights from Apple’s fiscal third-quarter earnings and touch on what it expects its future will look like as Apple heads into the critical iPhone season.
2Revenue Growth Was Impressive
3Profitability Continues to Soar
Revenue was up, which translated to a jump in profit during Apple’s fiscal third quarter. The company tallied $8.7 in billion profit in the three-month period ended July 1, topping the $7.8 billion it made in the prior year. Apple has generated $37.6 billion in profit in the first nine months of its fiscal year.
4Apple’s Impressive Cash Hoard Keeps Growing
5International Sales Hit a New High
6But Sales in China Dropped 10 Percent
Although Apple’s international performance is strong, its critical Greater China division is in trouble. During the fiscal third quarter, Greater China revenue slipped 10 percent to $8 billion, down 25 percent from the $10.7 billion Apple captured in the fiscal second quarter. China was the only market in which Apple experienced a revenue decline.
7Apple’s iPhone Sales Are Growing
8iPad Sales Growth Was the Biggest Surprise
9Mac Sales Continue to Grow
10Services Business Is Bigger Than Ever
11A Look Ahead to the Next Quarter
Apple told investors its business should continue to perform well, anticipating fiscal fourth-quarter revenue of $49 billion to $52 billion. Apple’s gross margin, a measure of its gross profit, will hit 38 percent, the company predicts, and its tax rate will hit 25.5 percent.