Apple announces Q3 2017 revenue of $45.4b: 41m iPhones, 11.4m iPads, 4.29m Macs

Apple has announced its latest quarter results including $45.4b in revenue and $8.72 profit from 41m iPhones, 11.4m iPads, and 4.29m Macs sold.

FY17 Q3 results compare to the previous quarter’s $52.9 billion in revenue, $11.03 billion in profit, 50.7 million iPhones, 8.92 million iPads, and 4.19 million Macs. In the same quarter a year ago, Apple reported $42.4 billion in revenue, $7.8 billion in profit, 40.4 millions iPhones sold, 9.9 million iPads sold, and 4.2 million Macs sold.

Full press release after the break, and stick around for our earnings call live blog at the top of the hour:

Sony A6500

Apple CEO Tim Cook praised the increased revenue and a quarterly record for Services revenue:

“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.”

And Apple CFO Luca Maestri highlighted 17 percent growth in earnings per share:

“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.”

Revenue Growth of 7 Percent and EPS Growth of 17 Percent Services Revenue Hits All-Time Quarterly Record

CUPERTINO, Calif.–(BUSINESS WIRE)–Apple® today announced financial results for its fiscal 2017 third quarter ended July 1, 2017. The Company posted quarterly revenue of $45.4 billion and quarterly earnings per diluted share of $1.67. These results compare to revenue of $42.4 billion and earnings per diluted share of $1.42 in the year-ago quarter. International sales accounted for 61 percent of the quarter’s revenue.

“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.”

“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.”

Apple is providing the following guidance for its fiscal 2017 fourth quarter:

• revenue between $49 billion and $52 billion • gross margin between 37.5 percent and 38 percent • operating expenses between $6.7 billion and $6.8 billion • other income/(expense) of $500 million • tax rate of 25.5 percent

Apple’s board of directors has declared a cash dividend of $0.63 per share of the Company’s common stock. The dividend is payable on August 17, 2017 to shareholders of record as of the close of business on August 14, 2017.

Apple will provide live streaming of its Q3 2017 financial results conference call beginning at 2:00 p.m. PDT on August 1, 2017 at www.apple.com/investor/earnings-call/. This webcast will also be available for replay for approximately two weeks thereafter.

This press release contains forward-looking statements including without limitation those about the Company’s estimated revenue, gross margin, operating expenses, other income/(expense), tax rate, and plans for return of capital. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the effect of competitive and economic factors, and the Company’s reaction to those factors, on consumer and business buying decisions with respect to the Company’s products; continued competitive pressures in the marketplace; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company’s gross margin; the inventory risk associated with the Company’s need to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; risks associated with the Company’s international operations; the Company’s reliance on third-party intellectual property and digital content; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; the Company’s dependency on the performance of distributors, carriers and other resellers of the Company’s products; the effect that product and service quality problems could have on the Company’s sales and operating profits; the continued service and availability of key executives and employees; war, terrorism, public health issues, natural disasters, and other circumstances that could disrupt supply, delivery, or demand of products; and unfavorable results of legal proceedings. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended September 24, 2016, its Form 10-Q for the fiscal quarter ended December 31, 2016, its Form 10-Q for the fiscal quarter ended April 1, 2017, and its Form 10-Q for the quarter ended July 1, 2017 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

Apple 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 we found it.

NOTE TO EDITORS: For additional information visit Apple Newsroom (www.apple.com/newsroom), or call Apple’s Media Helpline at (408) 974-2042.

© 2017 Apple Inc. All rights reserved. Apple and the Apple logo are trademarks of Apple. Other company and product names may be trademarks of their respective owners.

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(In millions, except number of shares which are reflected in thousands and per share amounts)

Three Months Ended Nine Months Ended
July 1, 2017 June 25, 2016 July 1, 2017 June 25, 2016
Net sales $ 45,408 $ 42,358 $ 176,655 $ 168,787
Cost of sales (1) 27,920 26,252 108,400 102,337
Gross margin 17,488 16,106 68,255 66,450
Operating expenses:
Research and development (1) 2,937 2,560 8,584 7,475
Selling, general and administrative (1) 3,783 3,441 11,447 10,712
Total operating expenses 6,720 6,001 20,031 18,187
Operating income 10,768 10,105 48,224 48,263
Other income/(expense), net 540 364 1,948 921
Income before provision for income taxes 11,308 10,469 50,172 49,184
Provision for income taxes 2,591 2,673 12,535 12,511
Net income $ 8,717 $ 7,796 $ 37,637 $ 36,673
Earnings per share:
Basic $ 1.68 $ 1.43 $ 7.18 $ 6.66
Diluted $ 1.67 $ 1.42 $ 7.14 $ 6.62
Shares used in computing earnings per share:
Basic 5,195,088 5,443,058 5,239,847 5,505,456
Diluted 5,233,499 5,472,781 5,274,394 5,535,931
Cash dividends declared per share $ 0.63 $ 0.57 $ 1.77 $ 1.61
(1) Includes share-based compensation expense as follows:
Cost of sales $ 216 $ 188 $ 662 $ 583
Research and development $ 566 $ 479 $ 1,730 $ 1,413
Selling, general and administrative $ 411 $ 387 $ 1,274 $ 1,184
Apple Inc.
Q3 2017 Unaudited Summary Data
(Units in thousands, Revenue in millions)
Q3 2017 Q2 2017 Q3 2016 Sequential Change Year/Year Change
Operating Segments Revenue Revenue Revenue Revenue Revenue
Americas $20,376 $21,157 $17,963 – 4% 13%
Europe 10,675 12,733 9,643 – 16% 11%
Greater China 8,004 10,726 8,848 – 25% – 10%
Japan 3,624 4,485 3,529 – 19% 3%
Rest of Asia Pacific 2,729 3,795 2,375 – 28% 15%
Total Apple $45,408 $52,896 $42,358 – 14% 7%
Q3 2017 Q2 2017 Q3 2016 Sequential Change Year/Year Change
Product Summary Units Revenue Units Revenue Units Revenue Units Revenue Units Revenue
iPhone (1) 41,026 $24,846 50,763 $33,249 40,399 $24,048 – 19% – 25% 2% 3%
iPad (1) 11,424 4,969 8,922 3,889 9,950 4,876 28% 28% 15% 2%
Mac (1) 4,292 5,592 4,199 5,844 4,252 5,239 2% – 4% 1% 7%
Services (2) 7,266 7,041 5,976 3% 22%
Other Products (1)(3) 2,735 2,873 2,219 – 5% 23%
Total Apple $45,408 $52,896 $42,358 – 14% 7%
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