Apple Announces Q3 FY 2017 Results
by Brett Howse on August 1, 2017 9:50 PM EST- Posted in
- Smartphones
- Apple
- iPhone
- Financial Results
This afternoon, Apple announced their earnings for the third quarter of their 2017 fiscal year. Revenue grew 7% year-over-year to $45.408 billion USD for the three months ending July 1, 2017, with a gross margin of 38.5%. Operating income was $10.77 billion for the quarter, up 6.6% from a year ago. Net income was $11.31 billion, up 11.8% as well. This resulted in earnings per share of $1.67, up from $1.42 a year ago.
| Apple Q3 2017 Financial Results (GAAP) | |||||
| Q3'2017 | Q2'2017 | Q3'2016 | |||
| Revenue (in Billions USD) | $45.408 | $52.896 | $42.358 | ||
| Gross Margin (in Billions USD) | $17.488 | $20.591 | $16.106 | ||
| Operating Income (in Billions USD) | $10.768 | $14.097 | $10.105 | ||
| Net Income (in Billions USD) | $8.717 | $11.029 | $7.796 | ||
| Margins | 38.5% | 38.9% | 38.0% | ||
| Earnings per Share (in USD) | $1.67 | $2.10 | $1.42 | ||
Apple has been the iPhone company for pretty much a decade now, and at time, Apple has been somewhat dependant on the iPhone for most of its earnings. That’s the case again this quarter, but Apple as a company is much more diversified now than even a year or two ago when iPhone revenues could account for over 70% of their earnings. This quarter, iPhone brought in $24.85 billion in revenue, which works out to 54.7% of Apple’s revenue. iPhone revenue was up 3% year-over-year, with unit sales of 41.026 million phones, up 2% from a year ago.
Services has quickly jumped from being an afterthought at the company, to now being their number two source of revenue, surpassing both the Mac and the iPad. Services revenue jumped 22%, to $7.27 billion. The iPhone ecosystem is a strong draw for many Apple customers, clearly.
Mac sales were only up 1% year-over-year, which is a bit surprising since they hadn’t yet launched their new laptops a year ago, but revenue was up 7% to $5.59 billion, so revenue-per-device is up nicely. Apple sold 4.29 million Macs in the last three months.
iPad has been the one sore spot for Apple for several years now, with slowing sales, but earlier this year, Apple announced a new, lower cost, entry level iPad. This strategy has paid off, at least for the interim, with iPad sales up 15% in terms of units sold. Apple sold 11.42 million iPads last quarter, compared to just 9.95 million a year ago. Revenue was only up 1% though, thanks to the lower cost of these entry level devices.
| Apple Q3 2017 Device Sales (thousands) | |||||
| Q3'2017 | Q2'2017 | Q3'2016 | Seq Change | Year/Year Change | |
| iPhone | 41,026 | 50,763 | 40,399 | -19% | +2% |
| iPad | 11.424 | 8,922 | 9,950 | +28% | +15% |
| Mac | 4,292 | 4,199 | 4,252 | +2% | +1% |
Other Products, which includes Beats, Apple TV, Apple Watch, and accessories, also had a very strong quarter, with revenue up 23% year-over-year to $2.73 billion. Apple doesn’t break down individual sales inside of Other Products though, but Apple did say Apple Watch sales were up 50% in the quarter. Up from what, we’re not sure, but obviously a big jump regardless.
For the fourth quarter of fiscal year 2017, Apple is expecting revenue between $49 and $52 billion, with a gross margin between 37.5 and 38 percent.
Source: Apple Investor Relations
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tipoo - Wednesday, August 2, 2017 - link
Gee I wonder what following the words at the bottom of the image would find, logamaniac.https://blog.codeproof.com/2017/01/30/enterprise-a...
yankeeDDL - Wednesday, August 2, 2017 - link
I use both (iPhone 6 for work and Galaxy S8). I have several colleagues that would never leave the iPhone: they are the ones who used crappy/old Android phones and got burned. I understand them, but up until the iPhone 7, included, they are inferior to many mid range and top range Android phones. Ginormous bezels, tiny battery. The iPhone's battery lasts ages if you use it as a phone. But give it a go with games, and it drains in few hours. The S8 trounces it in all respects, and it has 4X more pixels on the display.Takes ages to start up and the fingerprint reader is slooow (it is faster on the 7, to be fair).
Anyway, the next iPhone should fix the bezel problem: let's see, but to those who think that iPhone just works, they have not tried equally expensive Android phones.
tipoo - Wednesday, August 2, 2017 - link
Find something better than platform choice to feel smarter than others about, please. It's [date of reading].bill.rookard - Wednesday, August 2, 2017 - link
I'll never buy new-gen, I always go a generation or two back. The way Apple supports their devices for a longer period than Android/Windows(?) means that the devices are still usable and current in software much longer time frames.My GF is still rocking her iPhone 4s but it's only now starting to show it's age - so I'll be shopping around for a good 5s for her soon. My 5s is great. Still quick, still works, still being updated.
vivs26 - Wednesday, August 2, 2017 - link
Computers overpriced? Yes. Phones? No. Flagship Android aint cheap.Samus - Thursday, August 3, 2017 - link
You'd have to be dumb and stupid to say investing in Apple 10 years, 5 years, or even last year, was a bad idea.Dumb, and stupid.
damianrobertjones - Wednesday, August 9, 2017 - link
Capitals can be your friend.StrangerGuy - Wednesday, August 2, 2017 - link
"Apple did say Apple Watch sales were up 50% in the quarter. Up from what, we’re not sure, but obviously a big jump regardless."but-but-but what about the memes of Apple watch = gigantic failure the tech media loves to harp about?
tipoo - Wednesday, August 2, 2017 - link
A giant failure that likely passed the revenue of Rolex and any other swiss watch brand.AdditionalPylons - Wednesday, August 2, 2017 - link
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