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
“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!”
+1
No did not publish and said long ago they weren’t going to...
Watch isn’t a phone, it still needs to find its value if it has one, before it will mainstream.
Sad battery life and crippled API have limited what app developers can do with it so far.
Of course Apples future is questioned. Some people make their money from questioning.
Pulverized? Funny I was.watching FBC when the numbers came ouf. Many a talking said plenty, pulverized wasn’t one of the words mentioned. Me thinks another tech bubble is on the horizon, sealed in stone if the Chinese economy tanks.
Apple is above the Street's highest guesstimate. . . But there's no accounting for editorial headline writers. Yahoo's went completely the other way and falsely claimed that Apple had "Disappointing Earnings" which is completely untrue, since Apple's earnings were a record for the quarter and the highest of any company in history for that quarter. How can they be "disappointing" when they are higher than expected by the Street and a record?
The iPad was right on predictions, the Mac exceeded predictions. . . and the Revenues and profits, as well as margins outdid predictions.
The only thing that was supposedly unexpectedly lower was that iPhone sales were 47.5 million, where just a few Street anal-cysts had projected higher unit sales (others had fewer), and Apple disappointed their blue-sky wishful thinking. That Apple did not blow their guesstimates out of the water is due entirely to the tanking of China's economy, yet Apple still tripled sales in China Year over Year. . . and took the number selling one smartphone spot in China.
What is really funny is that Yahoo and the Street are now claiming that Apple failed to meet their expectations. . . but as of this morning, their expectations, according to Yahoo was LOWER than it is after Apple revealed exactly what they actually had made. LOL!
APPLEWith plenty of market anticipation, Apple Inc (AAPL) will report its 2015 third fiscal quarter results on Tuesday after the closing bell. Estimize and Wall Street are assuming lower earnings per share (EPS) and revenue numbers versus the previous quarter. Apple continues to be a market darling with a year-to-date (YTD) capital return of 19.28% compared to the Nasdaq Composite index which has managed to rise 9.99%. Estimize currently have over 400 estimates for Apple, and is expecting EPS to be $1.86 and revenues to come in at $49.476 billion. Wall Street, to no surprise, is predicting lower figures than Estimize and forecasts EPS of $1.79 and revenues of $49.092 billion. Yahoo Finance this morning at 8:30 EST
Apple's actual report? $1.85 EPS and revenues of $49.6 Billion. Yet post report, Yahoo and others are claiming the Street was predicting $1.86 EPS and up to $51.13 Billion. WHERE???? Not here. . . and no where else that I can find!
They are also claiming that Apple did not meet its own guidance for this quarter, which is a lie!
"The company forecast revenue of $49 billion to $51 billion, missing analysts' average estimate of $51.13 billion according to Thomson Reuters I/B/E/S."
This is what Apple actually forecast for this quarter in its guidance it provided for the 3rd Fiscal quarter of 2015 back in April:
Apple is providing the following guidance for its fiscal 2015 third quarter:
- revenue between $46 billion and $48 billion
- gross margin between 38.5 percent and 39.5 percent
- operating expenses between $5.65 billion and $5.75 billion
- other income/(expense) of $350 million
- tax rate of 26.3 percent
Apple beat every one of them. . . and the pundits are lying when they say different. Apple's guidance is for NEXT quarter. . . and is not out of the range of reasonable at all. . .
You can send them to me if you don't want to take the time to put them on eBay. No point in sending valuable goods to the landfill.
lol
Not mine, and my sons, and my wife's. A total of six devices over the years. We have a fortune invested in junked Ipods and Ipads. A total of six devices over the years. We have a fortune invested in junked Ipods and Ipads. Lets see — on average $300 per x 6 = $1800.
Our Ipad was obsoleted by Apple and no more OS updates for us. Screw you customer. So sorry! Solution: “but you can buy new one.” Ya, right.
We are not hard on our ipods and subsequent devices have not given us the same problems that the Ipods did. Partly because we can remove the cover and replace the battery. What a concept! A person cannot replace an Ipad/Ipod battery without brain surgery or paying someone to do the brain surgery. Yes, I investigated this.
As far as returning my 6 devices to Apple, I will investigate this. But what a PAIN IN THE REAR. If it were designed correctly in the first place, I wouldn't have to do this. But that is the idea, right? — planned obsolescence? My ipod dies, spend another $300 and buy a new one. The fool is the person who does this. But not me.
Any chance I can get a portion of my $1800 refunded. Lemme guess. Not a chance!
Probably like most people, I tossed my dead ipods into the drawer and they haven't made it to the landfill yet.
I have a pile of them. I don't want to part with them because I paid a fortune for them. Our first two Ipods even have engravings on them (one for my wife, one for me). We were fools back then to think that our engraved players would last and they didn't.
History.
I have always been interested in music players... all the way back to the mid to late 90s. I have some MP3 players that would be considered antiques.
I remember Napster and how it scared the music industry to the point of paranoia and how Apple negotiated the deal of the century and were able to convince them to sell their music and make lots of bucks for both Apple and RIAA members. Competitors to Apple were still too afraid and only half heatedly released their own players. Of course, they all faded away.
The heart of Apple's business is the player. And oh BTW, it has a phone too. And yes, it can play games, too. The “player” has allowed Apple to maintain a captive market — first: because of familiarity; and second: customers have a lot of money invested in their iTunes music and games (which will only play on an Apple device). I should know. My family and I have hundreds or maybe even a over a $1000 in Apple music. Do the math — 1000 songs at X$ each.
Actually, Apple have recently made it easier to convert the protected and proprietary formats to mp3 versus having to burn it to a disk and then convert it to mp3. They must have convinced RIAA that it is all safe now. Or maybe the consumer's appetite for digitized music has been satisfied and sharing it on the Internet is no longer interesting or worth the risk. Who knows.
Anyway, kudos to Apple.
Now for the negative...
Unfortunately, the player/phone looks pretty much the same as the first models. Yes, the screen is better and the processor is improved for playing videos. But it is pretty much same old same old. Heck, isn't the screen size about the same?
Yes, the Ipad is relatively new but I don't like it. An Ipad is not ideal for a serious computer user. That is where a laptop fills the space. And even a desktop.
I chuckle when parents give their college bound son or daughter a tablet. They'll soon find out that it is completely inadequate. I have seen it happen many times.
And then there is the battery issue....
BTW, Apple still cannot compete in the laptop and desktop area — as usual, Apple hardware and software is double the cost of a windows platform.
Like many loyal Apple customers I continued to buy the Ipod family of players after the previous version either died or was obsoleted by Apple. Not anymore. I have learned my lesson.
I have some pretty old ones. Probably first gen. You'd have to file off the engravings. :)
There are a couple of later models. But still older.
The ipad has a down rev OS and is obsoleted by Apple and I can no longer run any of the major apps on it. It still plays music but it is like an oversized music player.
I also have a PowerPC based computer. It is a big silver tower. Don't know what model. Still works but I can't get software for it. Unfortunately, my dad used it to research our family history and the Apple software used to create the documents is obsolete. I tried converting it. No luck! That was fun!
My dad bought some old blue and white Imacs in hopes of being able to run the old, obsolete software so that he could convert the files. No luck.
Apple has been fun! On all levels!
“BTW, Apple still cannot compete in the laptop and desktop area — as usual, Apple hardware and software is double the cost of a windows platform.”
They appear to be competing just fine - selling huge numbers.
Double the cost? Sure, if you value your time as an unpaid Microsuck tech at $0. If you don’t care about the risk of malware, viruses, etc.
I’ve gladly bought multiple Macs. I intend to never go back to Microsuck - having suffered greatly by owning many Windows machines for 13 years.
My Mac works. It has never had malware or a virus. It installs system software without having to reinstall drivers. Every time I upgrade, it works. I spend less time fixing my system on an unpaid basis and more time using my computer for what I want to do.
Best.
Who said anything about returning your devices to Apple. . . or that you cannot replace their batteries or that it was expensive. It's not. Only you seem to think it is. I know people who will do it for under $25. That's not expensive. . . and they are easily found on the Internet. . . as are instructions for replacing iPod and iPad batteries as a do-it-yourself project.
You chose to "junk" your iPad when you could have sold it to finance an upgrade. They were eminently salable. . . and still operated with their original iOS version. YOU decided they were obsolete when they still worked.
Frankly, Dhs, it has been my experience that people who claim to use products from Apple know how to spell the names of the products, especially when they claim to have used them for years. You still don't know how to spell iPad and iPod. That makes me doubt your story from the get go. That's red flag indicating Anti-Apple troll. . . Apple users don't spell the names of the products wrong, they just don't. And they don't criticize them with the typical talking points of the Android community. You do.
Where are all the Android devices that are so easily upgraded from their original Android versions? Oh, they don't exist. Their manufacturers don't supply the upgrade path. That's even the case for the vast majority of the Android tablets.
Apple gave the software developers all the free help they needed to convert MacOS software to Mac OS X. . . and it was not difficult to do, but some, apparently like your genealogy software publisher, opted to not do it. That was not on Apple. Those idiots reaped what they sowed. . . and where are their companies today? Probably bankrupt. Apple supported MacOS all the way through OS X.5 with the use of software emulation via Rosetta, but was forced to pull the plug
Your complaint belongs with the software publisher, not Apple. Apple did not create the genealogy software. . . that was a 3rd party who elected to not upgrade.
Still plays video, too. The Netflix app is still supported on the 1st-gen iPad. And it still has a Web browser. If all else fails, and it's still in good condition, the first-gen iPad still goes for over $100 on eBay.
I also have a PowerPC based computer. It is a big silver tower. Don't know what model. Still works but I can't get software for it. Unfortunately, my dad used it to research our family history and the Apple software used to create the documents is obsolete. I tried converting it. No luck! That was fun!
Apple has never published genealogy software. Any decent package ought to at least support export so some least-common-denominator format like csv, and newer software can import data from the more popular older packages.
My dad bought some old blue and white Imacs in hopes of being able to run the old, obsolete software so that he could convert the files. No luck.
That part makes no sense. He bought computers to go along with a computer that was working? What was the plan there?
Yes, double the cost. I shopped for a portable laptop for my son for college.
Running? Unless Apple dumps the OS and all support. I have an old power PC based tower that us useless to me. Circa 2004. It is a door stop. Whereas my old Dell PC (8400) from 2004 is running like a champ. A little slow but it is still running the latest MS Office. My son used it extensively for homework last Spring. Kind of ironic that we use that PC to manage our ITunes library.
So you need to define... “running.”
Someone suggested it or some kind of recycling process.
Ijunk for all I care. When I try to load an app and the software tells me that the app is not supported under my os, the last thing I am thinking is how nice it will be to be able to return it to recycle or to upgrade it. Why? Because it costs me more $. But that is the game right?
BTW, the money I have sunk into Apple products gives me the right to complain. If you would like, I can list model #s and serial numbers starting with the unit that I had engraved for my wife. Kind of silly, but my wife still has it. It is as dead as a doornail, but she kept it for sentimental reasons.
As for android, I pulled an old HTC android out of a box the other day. I was going to give it to a friend. It fired right up and I updated the apps no problem.
“What is the market share? Where I work, we have 120 computers and not a single one is an Apple.”
Now I’m just a dumb businessman, but market share isn’t as important as:
Profit share
Profit margin
Brand loyalty
Enthusiastic receptiveness to future products.
All of which Apple has in orders of magnitude.
The rest is noise.
Best.
Ya. Doing really well in phones and players. The rest, PCs/laptops, not so much. But that has been part and parcel for Apple.
The good news for Apple is that they filled a market, music players, when no one else dared for fear of getting sued by RIAA and that has saved the company.
Otherwise, Apple would still be a company with less 10% market share in the PC business. Kudos to Apple for having this vision and making lemon juice out of lemons — credit due to them.
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