Apple Business China News

Apple Reports Growth In Q3’15 Revenues And EPS, But Misses Estimates

BEIJING, CHINA - OCTOBER 17: Apple store employees welcome the customers to buy iPhone 6 and iPhone 6 Plus at an Apple store on October 17, 2014 in Beijing, China. Apple Inc began delivering its smartphone iPhone6 and iPhone6 Plus to the Chinese mainland on Friday.  (Photo by Feng Li/Getty Images)
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Apple posted quarterly revenue of $49.6 billion and quarterly net profit of $10.7 billion, or $1.85 per diluted share. And even though that represents an impressive 32.5 percent growth in revenue and a 44.5 percent jump in EPS, in comparison to previous year, Apple’s shares continue to fall, largely because it missed Street’s higher expectations.

Gross margin for Apple was 39.7 percent compared to 39.4 percent in the year-ago quarter. Interestingly and impressively though, international sales accounted for 64 percent of the quarter’s revenue.

The growth was largely fueled by record third quarter sales of iPhone and Mac, all-time record revenue from services and the successful launch of Apple Watch.

However, expectations were sky high from Apple, largely because it posted two blockbuster quarters previously, which also saw the company recording the largest corporate quarterly earnings of all time on Q1 2015 — thanks to iPhone 6 and iPhone 6 Plus.

Tim Cook said during the report,

We had an amazing quarter, with iPhone revenue up 59 percent over last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch. The excitement for Apple Music has been incredible, and we’re looking forward to releasing iOS 9, OS X El Capitan and watchOS 2 to customers in the fall.

In the third quarter, Apple’s year-over-year growth rate accelerated from the first half of fiscal 2015, with revenue up 33 percent and earnings per share up 45 percent. The company generated a decent operating cash flow of $15 billion, and returned over $13 billion to shareholders through its capital return program.

Coming to hardware, Apple sold 47.5 million iPhones, 10.9 million iPads and 4.8 million Macs in the quarter. As Compared to Q3 2014, iPhone sales grew by an impressive 34.9 percent while iPad sales, as expected, declined by as much as 17.9 percent. Mac sales are up 8.8 percent.

This quarter’e earnings, however couldn’t record much on Apple Music sales, largely because most users are currently on a three-month trial period However, Tim Cook did give us a vague “millions and millons” figure. So there’s that.
Apple’s board of directors has declared a cash dividend of $.52 per share of the Company’s common stock.


 

Editor-at-large and co-founder at The Tech Portal. He is a tech enthusiast with interests in new-age technology fields like Ai, Machine Learning, AR/VR, Outer Space and related stuff. Drop him a mail anytime, very reachable.


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