February 20, 2018

Hero iPad steers Apple to surprisingly strong results

03 August 2017, 01:12 | Virginia Santiago

Hero iPad steers Apple to surprisingly strong results

Apple Inc.'s (AAPL) Stock Is Reaping Benefits of an iPad Sales Turnaround

According to the company's latest quarterly earnings report, Apple expects revenues between $49bn and $52bn for the final quarter of the year, when the new iPhone is expected to be released.

Overall though, a good quarter for Apple, especially considering services revenue hit an all-time quarterly high.

Apple's Services unit had sales of almost $7.3bn during the three months to the end of June, a rise of 22% higher on the same period previous year.

Analysts had been modeling $44.89 billion and $1.57 per share in net income. For the quarter, the technology giant posted quarterly diluted earnings per share (EPS) of $1.67 on revenues of $45.4 billion.

But more importantly, its forecast for the current September quarter - when the next, big iPhone launch is expected - is strong.

The 41 million iPhones sold was a slight increase from a year ago, when Apple moved more than a little more than 40 million handsets.

GOP Rep Urges Trump to Stop Lawmakers' Healthcare Subsidies
Likewise, the voters won't shed too many tears if Trump follows through on his threat to end insurance company bailouts . These subsidies lower the price of health coverage for the poor under the Affordable Care Act, known as Obamacare .

The growth came thanks in part to product debuts at the company's Worldwide Developers Conference (WWDC) in June, which should "extend [Apple's] competitive lead this fall and well into the future", CEO Tim Cook said during the quarterly earnings call on Tuesday.

Apple's iPhone sales accounted for 54.7% of total revenue in the third quarter, making it by far the company's largest business.

iPad sales on the other hand are up 1.9 percent to $4.97 billion or 14.85 percent to 11.4 million units sold.

The Company posted quarterly revenue of $45.4bn up seven per cent year on year, global sales accounted for 61 percent of the quarter's revenue. Service revenues, which cover everything from the App Store to Apple Pay, reached a record $7.3 billion (up from $6 billion). This category includes Apple TV, Apple Watch, Beats products, iPod, and Apple-branded and third-party accessories. Revenue in Greater China declined 10 percent year over year to $8 billion. It's hard to say whether these guidance predictions indicate that the flagship OLED iPhone 8 will ship in September, or if Apple believes the 7s models (iterative updates to iPhone 7 and iPhone 7 Plus) will drive revenue.

In after-hours trading, Apple's stock jumped about 5 percent on the news.

This would mark Apple's biggest iPhone refresh since the iPhone 6 was released in 2016, with the potential to trigger a big wave of upgrades and new purchases.

Other News

Trending Now

Discovery buys Scripps Networks for $14.6bn
After posting $0.41 EPS for the previous quarter, Discovery Communications Inc .'s analysts now forecast 68.29 % EPS growth. Moffett Nathanson reiterated a "sell" rating on shares of Discovery Communications in a report on Friday, June 9th.

Only 600M Years Left to Experience Total Solar Eclipse
Just to the north and east, in parts of Wyoming and Nebraska, viewers will experience the "totality" - a full solar eclipse. What's more, the company's Nashville store falls within the path of totality and will host a viewing party.

IL thrill rides to face tests for permits
Wristbands for fair rides that open Monday at 4 p.m. run $18 and a discounted $12 on Wednesday's family night. All the rides at the State Fair are thoroughly checked before they are made available to the visitors.

Lawsuit: Fox coordinated with White House on false story
Spicer, Wheeler claimed, reviewed his "investigative notes" at the meeting and "asked to be kept abreast of developments". What do you think of Wheeler's lawsuit? DAVID FOLKENFLIK: Well, they dispute hotly the idea that they defamed Wheeler.

Russian President Vladimir Putin says, 755 US diplomats should leave Russia
On taking retaliatory measures, Putin said, "I thought it was time for us to show that we will not leave this without an answer". Obama had ordered reductions in Russian diplomatic staff to punish Russia for interfering with the 2016 USA elections.

USA nuclear reactor project collapses
Westinghouse filed for bankruptcy March 29, overwhelmed by the cost overruns on two reactors at the V.C. Fluor Corp., a contractor that Scana had previously said was capable of taking over the V.C.

Facebook's AI bot spekas unknown language
Social media giant Facebook shut down an artificial intelligence program after it created its own language. And killer robots on a battlefield will always be a bad idea.

Allow special counsel to finish essential job
If Mueller is fired, Republicans will quickly distance themselves from Trump , something they should have done long ago. Trump told The New York Times that if Mueller looks at anything involving his business dealings, "that's a violation ".

England in box seat v Sth Africa 3rd Test
Philander managed only five overs and, when South Africa turned to their change bowling, Stokes tucked in with drives and pulls. Stokes ensured his early hard work and former captain Alastair Cook's innings of 88 did not go to waste.

Cubs Acquire Justin Wilson and Alex Avila From Tigers
"(Martinez), you have the same emotional feelings", Al Avila said in NY before the Tigers played the Yankees. In exchange for the duo, the Cubs dealt infielders Jeimer Candelario and Isaac Paredes to Detroit .