Apple announced its Q3 earnings on Tuesday after the market closed and exceeded expectations. Revenue of $53.8 billion was reported exceeding analysts’ forecast of $53.39 billion. Revenue was up by 1 percent in comparison to the quarter a year ago.
Some Key Points from the report:
• EPS: Earning per share of $2.18 was reported, beating expectations of $2.10.
• iPhones accounted for 48.3% of Apple’s overall revenue, the first time that Apple’s popular phone has failed to contribute for more than half of its revenue. Revenue of $25.99 billion falling short of expectations at $26.31 billion was reported.
• Services including subscriptions, App Store fees, and other online services contributed $11.46 billion as against an estimate of $11.61 billion by FactSet.
• Over $17 billion on share buybacks was spent for almost 88 million Apple shares and $3.6 billion in dividends and equivalents was paid out during the quarter.
“We’re very excited to report a return to growth for the quarter, and it’s a record revenue for Q3 as well, best we’ve ever had,”, “Great services quarter, unbelievable wearables quarter, significant progress on iPhone, and off-the-charts significant progress in China, compared to where we were the previous quarter,” stated Apple CEO Tim Cook as reported to CNBC.
Apple exceeded performance in the Chinese market amid tensed relation between the U.S and China. Apple to have reported $9.61 billion in sales in Greater China including Taiwan and Hong Kong. Previous quarter sales in China had declined by 22%, as per reports. The current performance assured Apple was returning to growth in Mainland China, as reported to CNBC by Cook in an interview. Apple is planning to move its sole reliance on iPhone sales for generating revenue and is focussing on its streaming service Apple TV+, which is due to enter the market later this year.
“The VAT reduced from 16% to 13%, that’s clearly a big help. We took some price action, that’s a big help. We introduced trade-in and financing, that’s a big help. The more subjective thing is when the countries are meeting and talking, that’s better than not,” stated Cook to CNBC.
Apple shares soared more than 4% shortly after the earnings announcement and continued on Wedensday even though the market sold off post the hawkish comments from the Fed.
Dow 30 component Apple (AAPL) has revolutionized personal technology with the introduction of the Macintosh in 1984. Today Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch and Apple TV. Apple’s four software platforms — iOS, macOS, watchOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to “leaving the world better than they found it.
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