Apple Hits Record High Returning to Growth Thanks to Cheaper iPads – Cash Pile Hits $261.5 Billion
Apple (NASDAQ:AAPL 169.98 -0.10%) has announced its fiscal third-quarter earnings on Tuesday beating analyst expectations. The company has reported a $45.4b in revenue and $8.72 in profit from over 41 million iPhones, 11.4 million iPads, and 4.29 million Macs sold. The company is now sitting on yet another record of $261.5 billion cash pile, compared to last quarter’s $256.8 billion.
“We’ve got some momentum,” Apple CEO
Comparing today’s announcement with FY17 Q2, Apple (NASDAQ:AAPL 169.98 -0.10%) had announced $52.9 billion in revenue and $11.03 billion in profit from over 50.7 million iPhones sold. This dip was expected ahead of the new iPhone but the revenue grew about 7 percent year on year. “We believe there is a pause, but that probably bodes well for the future,” Cook said. While the industry largely believed that users are holding up to buy the highly anticipated iPhone 8 coming later this year, turns out iPhone 7 wasn’t such a loss either. Add in the cheaper iPads and Apple has found some momentum when compared to last year.
While iPhone sales went down for this quarter, iPad (15 percent up from last year) and Mac sales both saw an increase. The new iPad Pro lineup and the refreshed Macs along with the “Services and Other Products” helped the Cupertino tech leader see YoY revenue growth. “We’ve got some momentum,” Cook said. “A lot of things we’ve been working on a long time are beginning to show in the results,” hinting to these other services.
“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.”
Following Apple (NASDAQ:AAPL 169.98 -0.10%)’s earnings call, AAPL stock jumped over 5 percent to almost $160 in after-hours, helping Apple inch closer to that goal of being the first company to hit $1 trillion with a market capitalization of over $830 billion.
“If you look at the products, we sold 41 million iPhones, but frankly it’s better than that because we also reduced channel inventories by 3.3 million,” Cook said speaking to CNBC.
If you look across the world, we had several markets in Asia, in Latin America, and the Middle East which grew more than 25 percent year on year. If you look at [iPhone] 7 in the [iPhone] 7 Plus, we grew strong double-digit year on year compared to the 6S plus a year ago. So iPhone was terrific.
Cook had several concerns to respond to, including Apple’s decision to remove VPN services from the App Store in China. We will keep you updated with the latest from Cupertino, but it looks like Apple has found itself back on track.