Apple has posted its third quarter earnings report for 2015 this afternoon, and says it has broken its own record for the three-month period. The company earned a net profit of $10.7 billion on $49.6 billion in revenue.
That money comes from strong international hardware sales, which accounted for 64% of all revenue. Overall, Apple moved 47.5 million iPhones and 10.9 million iPads during its third quarter, as well as 4.8 million Macs.
Here is a breakdown of the numbers this year, vs. Q3 in 2014:
- Revenue: $49.6 billion versus $37.4 billion
- iPhone units: 47.5 million versus 35.2 million
- iPad units: 10.9 million versus 13.2 million
- Mac units: 4.8 million versus 4.4 million
And here are some comments from CEO Tim Cook and CFO Luca Maestri:
“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,” said Tim Cook, Apple’s CEO. “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 our 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,” said Luca Maestri, Apple’s CFO. “We generated very strong operating cash flow of $15 billion, and we returned over $13 billion to shareholders through our capital return program.”
There weren’t any surprises this quarter, as Apple hit most of Wall Street’s expectations. iPhone sales were a little low, however, causing the company’s stock to drop 6% in after-hours trading, and iPad sales continue to fall.
Apple’s CEO Tim Cook revealed that this quarter saw the highest number of Android switchers ever.
Apple announced a record-breaking 74.5 million iPhone units sold during the first quarter of the fiscal 2015 that ended on December 27. Thanks to strong sales in China, the Cupertino giant posted a record-shattering quarterly revenue and net profit of $74.6 billion and $18 billion respectively.
The financial results amount to a net profit of $3.06 per share. The numbers show a staggering 30% increase over the same quarter last year. The latter ended with $57.6 billion of revenue and net profit of $13.1 billion ($2.07 per share).
At 21.4 million, Apple iPad sales came in slightly lower than expected (21.5 million). The company moved 26 million slates for the same period a year ago.
The iPhone sales were not the only reason for the record performance. Apple posted “all-time record revenue” from Mac (5.2 million sold) and App Store transactions. The company didn’t mention iPod sales this time around.
Going forward, Apple expects between $52 billion and $55 billion of revenue during next quarter. The company’s board of directors declared a cash dividend of $.47 per share for the quarter it just reported.
Apple Watch will begin shipping in April
Apple will begin shipping its smartwatch in April. Tim Cook, the Cupertino giant’s CEO, confirmed the news during today’s quarterly earnings call.
As it turns out, Apple Watch will ship later than expected. Recent reports suggested that the wearable device will ship in March. No specific date for the launch of the smartwatch is set just yet.
A slightly underwhelming battery performance might be the underlying reason for the delayed shipping of the Apple Watch. The device was initially supposed to become available in “early 2015.”
Apple on Thursday announced that the first week of January set a new record for billings from the App Store, with customers around the world spending nearly half a billion dollars on apps and in-app purchases. It also revealed New Year’s Day 2015 marked the single biggest day ever in App Store sales history, as customers presumably used gift cards and took advantage of App Store sales.
“This year is off to a tremendous start after a record-breaking year for the App Store and our developer community,” said Eddy Cue, Apple’s senior vice president of Internet Software and Services. “We’re so proud of the creativity and innovation developers bring to the apps they create for iOS users and that the developer community has now earned over $25 billion.”
Furthermore, Apple announced it had a record-breaking 2014. The Cupertino-based company says billings rose 50 percent and apps generated over $10 billion in revenue for developers. App Store developers have earned a cumulative $25 billion from the sale of apps and games.
Apple launched a new website on Thursday, showing the jobs created by its ecosystem. It says more than one million jobs have been created to support Apple in the US.
Apple also bragged about its help in Global Fund to fight AIDS, saying it donated a $20 million this quarter, and since partnering with (RED) has donated over $100 million.
While there weren’t any new details for Apple Pay, the company reiterated that more banks and credit unions continue to add support for Apple Pay and it now represents about 90 percent of credit card purchase volume in the US.
When Apple sold 9 million iPhones in the opening weekend of iPhone 5S and 5C last year, it was assumed that would be the zenith; the cheaper 5C offered more opportunity, and launching in China for the first time offered untold opportunity. And then this year Apple sold 10 million iPhone 6 and 6 Plus units, with no China (yet) and a lot more cash at stake.
The report comes after Apple’s initial announcement that it had moved 4 million iPhone 6 and 6 Plus handsets the very first day. As it turns out, it almost kept that pace up through out the weekend. And that was with supply constraints. According to CEO Tim Cook:
“Sales for iPhone 6 and iPhone 6 Plus exceeded our expectations for the launch weekend, and we couldn’t be happier,” said Tim Cook, Apple’s CEO. “We would like to thank all of our customers for making this our best launch ever, shattering all previous sell-through records by a large margin. While our team managed the manufacturing ramp better than ever before, we could have sold many more iPhones with greater supply and we are working hard to fill orders as quickly as possible.”
What Apple didn’t reveal is the breakdown of unit sales between the 6 and 6 Plus, although it’s not clear how helpful it would have been if they had; the 6 Plus hit shipping delays far faster in a way that hinted more at severe supply constraints than overwhelming demand.
Still, 10 million is hugely impressive given that the phones are pricier and lack the scale of launch countries that the iPhone 5 and 5S did. We’ll see how the numbers fully shake out once Apple catches up to the demand. In the meantime, a record is a record, and it seems as though the company hasn’t lost any of its shine.
As expected, Apple is out with its financial report for Q2 2014 this afternoon. In a press release issued just a few moments ago, Apple announced that it sold 43.7 million iPhones, 16.3 million iPads, and pulled in $45.6 billion in revenue during its fiscal Q2.
Other than iPad sales, Apple beat the Street estimates by a wide margin. The Cupertino company also announced an accelerated strategy for its stock buyback plans, adding an additional $30 billion to the pot (for a total of $90 billion), as well as a 7-1 stock split…
Here is the full breakdown of Apple’s Q2 earnings:
- iPhones: 43.7 million versus 37.7 million expected
- iPads: 16.35 million versus 19.7 million units expected
- Macs: 4.1 million versus 4.03 million expected
- iPods: 2.76 million versus 2.99 million expected
- Revenue: $45.6 billion versus $43.6 billion expected
And here are some comments from CEO Tim Cook and CFO Peter Oppenheimer:
“We’re very proud of our quarterly results, especially our strong iPhone sales and record revenue from services,” said Tim Cook, Apple’s CEO. “We’re eagerly looking forward to introducing more new products and services that only Apple could bring to market.”
“We generated $13.5 billion in cash flow from operations and returned almost $21 billion in cash to shareholders through dividends and share repurchases during the March quarter,” said Peter Oppenheimer, Apple’s CFO. “That brings cumulative payments under our capital return program to $66 billion.”
The last time Apple split its stock was back in 2005. Shareholders will receive six additional shares for each share they hold and the share price will drop to around $80. The company also increased the dividend by 8% per share, and says it plans to do so yearly.