Apple posts solid quarter

Apple has announced financial results for its fiscal 2017 third quarter ended July 1st, 2017. The Company posted quarterly revenue of $45.4 billion and quarterly earnings per diluted share of $1.67. These results compare to revenue of $42.4 billion and earnings per diluted share of $1.42 in the year-ago quarter. International sales accounted for 61 per cent of the quarter’s revenue.

“With revenue up 7 per cent year-over-year, we’re happy to report our third consecutive quarter of accelerating growth and an all-time quarterly record for Services revenue,” said Tim Cook, Apple’s CEO. “We hosted an incredibly successful Worldwide Developers Conference in June, and we’re very excited about the advances in iOS, macOS, watchOS and tvOS coming this fall.”

“We reported unit and revenue growth in all our product categories in the June quarter, driving 17 per cent growth in earnings per share,” said Luca Maestri, Apple’s CFO. “We also returned $11.7 billion to investors during the quarter, bringing cumulative capital returns under our programme to almost $223 billion.”

Commenting on the results, Geoff Blaber, Vice President Research, Americas, CCS Insight, said: “The June quarter is always the low point for the year as iPhone demand slows ahead of new September iPhone announcements. Nonetheless, it was a solid quarter despite slowing iPhone demand in the face of mounting expectations for the 10th anniversary launch”

“Apple delivered a solid quarter firmly in line with expectation. All eyes are on the new iPhone product launches and the scope for a later October launch for the flagship. Apple has shown a remarkable ability to manage supply chain and ramp new iPhone models but a delay will add pressure to fulfill pent up demand in the last calendar quarter of the year”

“China remains a concern despite the generally strong earnings. Competition from domestic players is intensifying and it’s clear that its ecosystem advantage in the West is far harder to replicate as powerfully in the East where Tencent and others dominate”

“Apple’s Services business continues to be the shining light. Not only is $7.3 billion in revenue hugely significant in its own right, it underlines the ecosystem advantage it has over its competitors outside of China”

“iPad’s return to growth was a bright spot for the quarter and follows repositioning and significant emphasis on productivity and the enterprise. Maintaining growth won’t be easy but Apple has broken the negative trend and continues to outperform the broader tablet market”

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