Apple Third Quarter Financial Results – Up 35% Vs Last Year

Apple has reported their financial results for the quarter ending June 27, and the results are staggering.

According to their information, they have sold 47.5 million iPhones in the quarter, which is up 35% on last year. Mac sales were also up, rising 9% to 4.8 million. Unsurprisingly, CEO Tim Cook called it “an amazing quarter.”

Profits were up 38% to a staggering $10.7bn(£6.87bn), whereas revenue itself was up 33% to $49.6bn. The crazy thing is, the third quarter is usually Apple’s slowest in terms of iPhone sales, as people start expecting the release of the new model.

Despite the very strong showing for this quarter, Apple’s shares actually fell 6.7  to $121.89, in after-market trading in New York.

Apple are forecasting revenue between $49bn and $51bn for the fourth quarter.

However, things weren’t quite so peachy for the iPad, as sales were actually down 18% from last year, selling 10.9 million units.

 

On the topic of the brand new Apple Watch, Tim Cook was more positive, as he said it was off to a “great start”. Obviously it is very early days, but it’s always encouraging for new technology to get a strong start.

Sadly, Apple didn’t divulge any sales figures for the Watch, in order to avoid giving their competitors inside information.

We do know, though, that Apple’s “other products” (which includes the Watch, as well as the iPod and Beats headphones) clocked in around $2.6bn which is up $952 million.

According to a statement from CFO Luca Maestri, the revenue from the Watch amounted to “well over” that $952m increase.

He also went on to say that sales of the watch in the first nine weeks exceeded the sales of both the iPhone and iPad when they first launched.

Apple’s gross margin, which is the difference between the amount it spends on making the products vs how much customers pay, was up 39% which is up slightly from last year.

 

Sales in China, Hong Kong and Taiwan doubled year-on-year, and accounted for more then a quarter of their total third quarter sales.

But, there were comments from Colin Gillis, an analyst for BGC Partners, who said that the company’s reliance on iPhone sales and growth in China is a concern: “Look at the PC market. People ask if that could ever happen to smartphones. Of course it could. And there are risks associated with its dependence on China. Overall the results are stunning – it’s made $10bn in profit. But Apple is an outlier in many metrics, so you need to look at the performance relative to expectations.”