Apple earnings beat expectations, iPhone 7 plus strong demand pushes sales

October 28, 2017, By Naanga

Beijing, China (_____) – Apple Inc’s third-quarter revenue topped analysts’ estimates, as the iPhone maker benefited $1.67 a share from high demand in iPhone 7 Plus. Analysts of the Wall Street had expected on average revenue to post $44.4 billion and earnings per share of $1.56.

After the earnings released, Apple’s shares rallied 5.5 percent to $158.3 trade at a record level, hits its previous all-time high of $156.6, in extended-hours trading at NYSE, according to MarketWatch. Apple share has gained 38 percent this year, surpassing double-digit gains by both the Dow Jones Industrial Average and S&P 500.

1.2 billion iPhone users

Apple reported the profit for the quarter ended September rose three percent to $8.7 billion, and revenue soared to $45.4 billion from $42.3 billion. International sales accounted for 61 percent of the quarter’s revenue including 41m iPhones, 11.4m iPads, and 4.29m Macs sold. Since iPhone launched the market, Apple has now surpassed 1.2 billion add-on iPhone sold. In other words, one of seven people in the world is using iPhone.

iPad sales jumped 15 percent to $4.9 billion for the first time in three years, one the highlights of Apple’s earning. Apple lasts for being the most significant vendor in last four years based on IDC’s tablet market’s latest estimation. More than half of iPads sold were to people buying their very first iPad in markets like China and Japan. Additionally, Mac gained global unit market share and reached new June quarter unit sales records in mainland China and Japan.

Service revenue at all-time quarterly record, and “The Company’s services business has become the size of a Fortune 100 company, a milestone we’ve reached even sooner than we had expected,” said Tim Cook, Apple’s CEO.

Tim Cook: “Mainland China was flat year-over-year during third-quarter.”

“We achieved double-digit revenue growth in many developed markets, including the U.S., Canada, Germany, Spain, Australia, and Korea, and emerging markets outside of Greater China grew 19% over a year ago,” said Luca Maestri, Apple’s CFO. “Hong Kong continued to drag down the total Greater China segment,” said Tim Cook, Apple’s CEO.

China, the world biggest smartphone market, perhaps the Apple’s the most prominent overseas market, with income from Greater China accumulating for 17 percent of the company’s sales in the last quarter. At the same time, Apple faced a struggle for domestic brands like Huawei, Oppo, Vivo and Xiaomi, and slid to fifth from fourth in the China smartphone market, according to Canalys, an independent analyst company.

Fortune 100 company as they expected

Analysts consider that iPhone 8 and iPhone X to revamp their influence here in China. Apple’s  iPhone X could provide the “strongest iPhone product cycle to date,”, said Daniel Ives, GBH Insights analyst. But we need to wait until on November 2, 2017, and fiscal fourth-quarter earnings call sets. Apple’s coming-quarter revenue company expects $49billion to $52 billion.

In contrary, Credit Suisse trimmed its 2017 estimate for iPhones to 217m units from a former 223m, and clipped its 2018 forecast to 233m from 248m, according to Bloomberg report.

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