Apple Q3 2018 Earnings – Lower Than Expected 41.3 Million iPhone Sales, iPad Sales Up, With $11.5 Billion in Profit

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The Apple (NASDAQ:AAPL) Q3 2018 earnings are out, with the tech giant having posted a revenue of $53.3 billion, along with a quarterly profit of $11.5 billion, or $2.34 EPS, where it beat expectations of $2.18 EPS. The California-based giant’s performance for this quarter is much better compared to the same period last year, where Apple posted a revenue of $45.4 billion, quarterly profit of $8.7 billion, or $1.67 EPS.

However, while the results have improved considerably when comparing results with a 12-month gap, it should be noted that Apple (NASDAQ:AAPL) sold fewer iPhone units than the expected figures. Apple (NASDAQ:AAPL) sold a total of 41.3 million iPhone units, but the projected amount was 41.6 million units.

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Still, typically the three months ending in June happen to be the slowest in terms of iPhone sales and revenue, but the tech giant performed considerably well during a period where the majority of consumers might have decided not to upgrade thanks to the newest series being introduced after a couple of months.

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Apple (NASDAQ:AAPL) posted the strongest third quarter in the company’s history since it managed to beat analyst expectations for earnings per share and revenue. The higher revenue can be attributed to not just the increased iPhone sales, but also the fact that the average selling price of an iPhone is much higher than what it was a year ago.

The $999-priced iPhone X is a major contributor towards this ‘average selling price’ increase and it should be noted that this price range is expected to remain the same with the imminent launch of the 2018 iPhone series. Mac sales were down 13 percent and iPad sales rose, but only just; 11.55 million units were sold compared to 11.42 million units a year ago.

“We’re thrilled to report Apple’s best June quarter ever, and our fourth consecutive quarter of double-digit revenue growth. Our Q3 results were driven by continued strong sales of iPhone, Services and Wearables, and we are very excited about the products and services in our pipeline.”

Gross margin for the quarter was 38.3 percent compared to 38.5 percent in the year-ago quarter, with international sales accounting for 60 percent of revenue. Apple (NASDAQ:AAPL) also declared a quarterly dividend payment of $0.73 per share, which is payable on August 16 to shareholders of record as of August 13.

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Apple's guidance for the fourth quarter of fiscal 2018 includes expected revenue of $60–62 billion and gross margin between 38 and 38.5 percent. With Apple (NASDAQ:AAPL) having released its 2018 MacBook Pro notebooks after a long time, those sales are going to be posted in the next quarterly earnings. Additionally, the iPad sales momentum will also be able to pick thanks to newer models that will come with a smaller footprint, feature razor bezels, and will come with Face ID support.

There are lots of things to expect from Apple’s upcoming quarterly earnings to stay tuned for the latest.