Apple’s Q3 2017 Earnings: $45.4 Billion Revenue & $7.8 Billion Profit

Today, Apple announced their financial results for their third fiscal quarter, and second calendar quarter of 2017. Apple posted a revenue of $45.4 billion, and net profit of $8.7 billion for the quarter, with $1.67 per diluted share. Compare that to Q3 2016, when Apple posted revenue of $42.4 billion, and profit of $7.8 billion ($1.42 per diluted share) for the quarter, showing a bounce back from the year ago quarter. Apple saw a 7% increase in revenue, and 11.5% increase in profit. Gross Margin was at 38.5% compared to 38% the year ago quarter, and 61% of sales were international. Apple’s guidance for this quarter was between $43.5 – 45.5 billion, so they came in the high end of that range.

As far as unit sales, the iPhone reached 41 million units in the quarter, compared to 40.4 million from the year ago quarter. Apple sold 11.42 million iPads, down from the 9.95 million in Q3 2016. Apple also sold 4.29 million Macs, which is just up from the 4.25 in the year ago quarter. The company now has $261 billion in cash and marketable securities. Apple’s guidance for the fourth quarter of 2017 offers expected revenue of $49 – $52 billion, and gross margin between 37.5 and 38%.

The biggest takeaway revolves around the iPad. Buoyed by the new 10.5″ iPad Pro and low cost iPad, sales came in at a 28% increase over the last quarter, and 15% over the year ago quarter. The Services category of the App Store, iTunes Store, Apple Music, iCloud, etc, was another stand out with $7.3 billion for the quarter, a company record, and up 22% from the year ago quarter.

As CEO Tim Cook describes,

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. 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.”

You can listen to the full conference call here.

Comments are closed.