Posted on 07/21/2015 2:03:36 PM PDT by Swordmaker
Apple today announced financial results for its fiscal 2015 third quarter ended June 27, 2015. The Company posted quarterly revenue of $49.6 billion and quarterly net profit of $10.7 billion, or $1.85 per diluted share. These results compare to revenue of $37.4 billion and net profit of $7.7 billion, or $1.28 per diluted share, in the year-ago quarter. Gross margin was 39.7 percent compared to 39.4 percent in the year-ago quarter. International sales accounted for 64 percent of the quarter’s revenue.
Wall Street analysts’ consensus estimates called for Apple to report EPS of $1.81 on revenue of $49.31 billion for 31.70% YOY growth.
The growth was fueled by record third quarter sales of iPhone and Mac, all-time record revenue from services and the successful launch of Apple Watch.
“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.”
Cook told CNBC that Android to iPhone switchers are accelerating and hit the highest rate ever this quarter. Cook also sees Apple Watch as being a big holiday gift. Apple’s cash on-hand has broken above $200 billion for the first time.
Apple Inc. Q3 2015 Unaudited Summary Data
(Units in thousands, Revenue in millions)
(1) Includes deferrals and amortization of related non-software services and software upgrade rights.
(2) Includes revenue from iTunes, AppleCare, Apple Pay, licensing and other services.
(3) Includes sales of Apple TV, Apple Watch, Beats Electronics, iPod and Apple-branded and third-party accessories.
“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.”
Apple is providing the following guidance for its fiscal 2015 fourth quarter:
• revenue between $49 billion and $51 billion
• gross margin between 38.5 percent and 39.5 percent
• operating expenses between $5.85 billion and $5.95 billion
• other income/(expense) of $400 million
• tax rate of 26.3 percent
Apple’s board of directors has declared a cash dividend of $.52 per share of the Company’s common stock. The dividend is payable on August 13, 2015, to shareholders of record as of the close of business on August 10, 2015.
Apple will provide live streaming of its Q3 2015 financial results conference call beginning at 2:00 p.m. PDT on July 21, 2015 at www.apple.com/quicktime/qtv/earningsq315. This webcast will also be available for replay for approximately two weeks thereafter.
MacDailyNews Take:
Apple CEO Tim Cook
Well that’ll do it. Tomorrow will be interesting.
“Buy the rumor, sell the news”
“Buy on mystery, sell on history.” — old saying, but the late Paul Kangas is the only source I know
At the moment Apple is tanking after hours due to a disappointing 4th quarter outlook.
++++
iBet
iWatch
After the killing they made on the iWatch (4cents above 'expectations'), you can expect an iClock, or maybe even an iPocketwatch.
They did not, but it is likely extractable from the increase in the "Other" category, which had an increase of about $1 billion plus. Apple counted the revenue from the Apple Watch in that category this quarter. Assuming their startup costs included in the 38% margin range (Apple said they were targeting 42% margin for the Apple Watch, so my margin estimate number may be a bit low), and an approximate $500 average selling price, working backwards, then the number is about ~5,250,000 Watch units world wide, which is a lower estimate than the number of units which The Motley Fool came up with was based on Slice Intelligence numbers for US sales which were 37% of the number sold throughout the world (~2.1 million US sales divided by ~37% = ~5.65 million units sold world wide). . . . and I am assuming that AppleTV sales remained about the same as the previous quarter which is unlikely, as people were anticipating a new upgraded AppleTV in the last quarter which did not get released.
That's amazing for any company. For one as large as APPL, it's astounding.
Mac Daily News — Apple 3rd Quarter Financials Conference Call — July 21, 2015
- Conference call begins.
- Tim Cook: Apple today posted record quarterly revenue of $49.6 billion and record quarterly net profit of $10.7 billion
- Apple experiences the highest switcher rate from Android that Apple has ever recorded
- Mac sales defy the industry trend with 9% growth in a market that IDC says contracted by 12%
- App Store produced its best quarter ever with revenue growing 24%
- China results were outstanding for iPhone and Mac
- Cook: Apple Watch production ramp made huge progress over the quarter
- Cook: Apple Watch in 19 countries currently with 3 more coming by the ned of the month
- Wristly measured a 97% customer satisfaction rate for Apple Watch
- Hospitals using Apple Watch into health care
- Over 8,500 apps for Appel Watch already, with watchOS 2 and native apps coming soon
- Cook: It is a rare and special privilege to launch a new platform like Apple watch
- Apple very excited about Apple News app. Have signed many top publishers already
- Apple thrilled with launch of Apple Music
- Customers and reviewers love the human curation of Apple Music
- Millions and millions of peopel are already enjoying Apple Music every day
- Over 15,000 artists have signed up to use Apple’ Music’s Connect
- Apple Pay launched in the UK with over 250,000 locations
- Apple Pay in US has much momentum700 colleges and universities will accept Apple Pay
- American Express to add Apple Pay support next month
- Apple Pay acceptance on track for over 1.5 million locations by end of 2015
- Luca Maestri: Another record quarter
- China revenue doubled YOY to over $13 billion
- $15 billion cash flow from operations
- iPhone quarterly unit sales: 47.534 million
- iPad quarterly unit sales: 10.931 million
- Mac quarterly unit sales: 4.796 million
- Apple thrilled with reception to the new MacBook
- iPad has 76% share of U.S. tablet market for tablets over $200 (APple does not compete in the low-end tablet market)
- IBM MobileFirst for iOS released 13 new apps (35 total) for enterprise. On track for over 100 apps by end of the year
- AAPL After Hours: $122.38, down $8.37 or -6.40% @ 5:20PM EDT
- Revenue from “Other Products” grew sharply, up 56% YOY. Category includes sales of Apple TV, Apple Watch, Beats Electronics, iPod and Apple-branded and third-party accessories
- Appel will not disclose Apple Watch unit sales in order to not provide competitors with that information
- Global Apple Retail Stores 456; 40 in Greater China by the middle of next year
- Apple returned over $13 billion to shareholders during the quarter
- Apple is providing the following guidance for its fiscal 2015 fourth quarter: – revenue between $49 billion and $51 billion – gross margin between 38.5 percent and 39.5 percent – operating expenses between $5.85 billion and $5.95 billion – other income/(expense) of $400 million – tax rate of 26.3%
- Apple’s board of directors has declared a cash dividend of $.52 per share of the Company’s common stock
- The dividend is payable on August 13, 2015, to shareholders of record as of the close of business on August 10, 2015
- iPhone channel inventory down by over 600,000 units. Apple sold more than they expected to sell – Cook
- iPhone growth is nearly 3x the smartphone market
- 73% of iPhone customers have not yet upgraded to iPhone 6 or iPhone 6 Plus. There is a lot of headroom left for iPhone upgraders – Cook
- Apple has seen the highest rate of Android to iPhone switchers that the company have ever measured
- Apple expects another stellar quarter (fiscal Q415; this current quarter) for iPhone sales
- Maestri: Currency headwinds continue to be strong
- Maestri: As Apple prepares for “a busy fall,” gross margins will decline
- Maestri: iPhone 6 Plus is doing particularly well in Greater China and Asia
- Cook: We will not disclose the shipments of Apple Watch in order to not give competitors that insight
- Cook: Look at “Other products” category. The aggregate in that category are shrinking.
- Cook: Through the end of the quarter, the Apple Watch sell-through is higher than the original iPhone and iPad – at just 680 points of sale (mostly online).
- Cook: We are very excited with the positioning of Apple Watch. Native apps are “going to be killer.”
- Cook: We expect Apple Watch to be one of the holiday’s hottest gifts
- Cook: I feel fantastic about Apple Watch
- Cook: Apple Watch customer sat is off the charts and, when we see such high customer sat for other products, they are blockbusters
- Cook: If we do a great job on our products, people will be willing to pay more because the products offer so much more
- Cook: New “upgrade anytime” cellphone plans could help the upgrade rate, shorten the upgrade cycle, for iPhone
- Cook: We think the iPhone has a lot of legs to it. Many, many years. There is much innovation left to do. We’re in the early innings here.
- Cook: I am still bullish on iPad. We have incredible new features coming with iOS 9 for iPad, especially.
- Cook: I believe that the iPad consumer upgrade cycle will eventually occur. Usage remains unbelievably great. iPad usage is 6x greater the next tablet competitor
- Cook: We remain extremely bullish on CHian and we continue to invest. China will be Apple’s largest market at some point in the future.
- China volatility on the markets may create some speed bumps in the near term, but stock market participation among households in narrow (vs. the U.S., for example)
- China worry, for Apple, is overstated and we’re not changing anything with our plans for China
- Cook sees an an incredible rise of the middle class in China and tremendous opportunity for Apple
- Cook: I think China is an incredible, unprecedented opportunity
- Apple is very focused on growing iPhone around the world
- Luca hates currency headwinds. No really, he does. Remarkably, Apple would be doing even better without them
- iPhone has increased in all geographies around the world despite price increases due to those blasted currency headwinds
- Cook: Apple Watch’s June sales were higher than sales in April or May (thanks, we assume, to having actual supply to begin to satisfy demand – MDN Ed.)
- End of conference call.
Looking at the after hours trades, they are mostly small traders. . . and some were obviously stop loss trades set for 17:59 at 122. Someone was grabbing bargains.
The financial performance of Apple is simply astounding and there is probably no other company in the history of human civilization that has grown so quickly and innovated so much.
I am still buying Apple stock because I think in a few years time, we will see annual revenue exceed a trillion dollars ($1,000,000,000,000) and if they maintain that 35% profit margin, they will generate $350,000,000,000 in profits in a year.
The Street anal-cysts pull numbers out of the nether orifices and then some "investors," those who don't realize where those guesstimates come from, get disappointed when the fart gas filled balloons explode in their faces and sell their shares in profound panic, failing to see the amazing records being broken in front of their eyes.
These panic sellers are egged on by ignorant, idiot "journalists," who probably got their Financial "expertise" from the crumbs left in an empty CrackerJack box, not finding their prize, which made them so embittered, they too cannot see success through their envy, causing them to pile on with headlines like Yahoo's echoed in repeating Bloomberg's Tim Higgin's screed with a totally specious and downright misleading headline: "Apple Shares Plunge After Disappointing Earnings Report", reporting Apple's quarter in which EARNINGS broke all previous records for the same quarter! I'd call that journalistic and editorial malpractice, wouldn't you?
Apple's books are kept in Cupertino. . . California, not India. Apple was investigated in 2013 by the Democrats complaining that Apple wasn't paying their fair share of taxes. . . but then Apple brought in their tax return and showed they paid ONE out of every 40 dollars in US Corporate Income Taxes paid in the USA in 2012. . . and were the number one payor of Income Taxes in California, their home state. They also showed they paid income taxes in every jurisdiction in which they do business. Oops.
Apple reports that they anticipate that next quarter their consolidated tax rate will total 26.3% on ALL Profits.
Um, no. Net profit was $10.7 Billion, but Apple returned $13 BILLION dollars to the stockholders last quarter. They paid out more than they made in dividends and equity returns to stockholders. Are you claiming the stockholders are ignorant homo-nazi sycophants? That's a pretty broad brush, stinkpot. If you own insurance, a retirement, or an annuity, many mutual funds, you are probably painting yourself.
Hey, I see a pile of Iphones, Ipods, Iwhatevers in the junk heap in the background.
Tossed because the batteries died or Apple stopped supporting them.
Funny how Apple claim to be environmentally friendly when their products become doorstops within a very short period of time. I have a drawerful of useless Apple products that haven’t made it to the landfill yet. But soon... very soon.
iPhone, iPod, iPad batteries are replaceable, dhs.
Funny how Apple claim to be environmentally friendly when their products become doorstops within a very short period of time. I have a drawerful of useless Apple products that haven’t made it to the landfill yet. But soon... very soon.
My original iPhone is still going strong eight years later with it's original battery. It was finally retired as a phone, after being handed down through my family, last year in March, but it was handed down to my three year old grand daughter as an iPod touch to be used as a game machine, still on its original battery, which holds about an 80% charge.
My original iPad still works with its original battery, five years later, also having been handed down. The screen had to be replaced when my younger daughter dropped it off the top of her car. . . but even that cost less than $50 to replace.
Those things in the back ground are all the Android phones and tablets that cannot be traded or sold because 1) the cannot be upgraded; and 2) you cannot erase the personal data on them to hand them off to anyone and be assured you are not including personal data. OOPS! Golly darn. 670,000 Android devices cannot be completely erased to be safely sold or even handed down to family members! The only safe way to get rid of them is to shred them! LOL!
Apple devices are easy to return to Factory New condition, safely blank condition. . . and command a premium resale value so do NOT end up in landfills.
Frankly, I don't believe you have a drawerful of useless Apple products. I resell mine when I upgrade now, not handing them down to family members anymore because they can afford their own and I can usually sell my old iPhone for more than the initial contract payment for a new one. . . sometimes twice as much. Why would I toss it into a drawer? Erase it and sell it, lower the Total Cost of Ownership.
“Wall Street just dropped their price 8% on good news.”
Very typical. I’ve seen many people surprised by stocks falling on good news.
Drudge Report headline: APPLE FUTURE QUESTIONED
http://news.yahoo.com/apple-revenue-rises-32-5-percent-due-strong-203234077—finance.html
At this point, releasing the watch numbers will do no good as anything they say will be construed as inadequate. I also see this as a new step in Apple’s propensity for secrecy: they never have watch numbers before, so don’t start now.
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