Apple has released its fiscal third quarter earnings, showing unexpected growth and record revenue levels, including a strong performance in its services department.
In the shadow of the upcoming iPhone 8 release, the date of which is widely speculated on, but as yet unannounced, and based on previous performances, analysts were expecting a slump, but sales rallied and the Cupertino giant was able to produce a positive report.
Quarterly revenue was up 7% year over year to $45.5 billion (approx. £34.4 billion), and earnings per diluted share were at $1.67 compared to the Thomson Reuters aggregated estimate of $1.57. The board of directors announced a cash dividend of $0.63 per share of the company’s common stock.
Apple CEO Tim Cook said: “We’re happy to report our third consecutive quarter of accelerating growth and an all-time quarterly record for Services revenue.”
Luca Maestri, Apple CFO, further noted that growth was seen in all product categories for both revenue and units in the most recent quarter.
A particular success story was in the services business, in which the company saw 22% growth year on year, taking the department to the size of a Fortune 100 company earlier than Apple had anticipated.
Despite this quarter’s success, all eyes are faced firmly forwards with anticipation builds for the release of the iPhone 8. Co-head of equities at Wedbush, Ian Winer, told CNBC that the success of the next iPhone is key. He asked: ‘Is the iPhone 8 actually going to get released? And what are people going to do with it?’ Winer particularly questioned the rumoured price tag of $1100.
Apple provided guidance going forward to the fourth quarter. It anticipates revenue to be between $49 and $52 billion – more than Thomson Reuters expected the company to forecast.
The internet has been awash with rumours and speculation about what the iPhone 8 will look like and what features it will have, with mentions of removing the home button and using facial recognition to replace Touch ID.
Cook has argued that the rumour mill about the iPhone 8 has reduced excitement around the 7 model – but this does not appear to be the case according to this quarter’s earnings report.