Apple Inc. dampened fears about slow iPhone sales and potential delays of its next smartphone with its quarterly earnings report Tuesday, sending shares soaring to levels that would be record highs. US sales fell 4% sequentially to $20.37 billion.
Mac sales remained strong, and iPad sales returned to growth during Apple's most recent quarter, helping to propel the company as buyers await a major iPhone launch this fall. Apple said it expects revenue of between $49 billion and $52 billion for the current quarter, meaning even the low-end of expectations would far surpass the $46.8 billion it generated in the fourth quarter previous year.
While Apple was typically tight-lipped about its plans for the next iPhone, Cook and Company's lofty estimates for the Q4 period, anywhere from $49bn-52bn, would suggest they're aiming for huge initial sales of the next handset. This year's third quarter saw a net quarterly profit of $8.7 billion, or $1.67 a share, compared to $1.42 per diluted share last year in the same quarter.
"Question may be when does mass availability occur", he added.
The iPad product lines also showed unexpected strength, service revenue continues to grow at a healthy clip, and even the much-maligned Apple Watch showed a 50-per-cent sales increase. But although Apple declined to reveal timing today, the forecast indicated to one analyst, at least, that the new iPhones would likely come out by the end of September.
Apple's service revenue, which includes everything from the sale of digital music tracks and movies to online storage, jumped 22% to $7.3 billion. "We feel we will do better in the September quarter", he said. The business had revenue of $52.90 billion for the quarter, compared to analysts' expectations of $52.61 billion.
During the previous three months, Apple moved 4.3 million Macs, roughly the same as it sold a year ago. During that quarter Apple sold 40.4 million iPhones, 9.95 million iPads and 4.25 million Macs.
Big news on upcoming iPhones?
The quarter was overall favorable for Apple, with it announcing a 7-percent revenue growth and a quarterly revenue of $45.4 billion.
Apple sold 41.0 million iPhones in the June quarter, up 1.6% from a year ago and ahead of the 40 million that investors expected.
The iPad has been gaining traction as of late, gaining a reputation as a business product; Apple chief financial officer Luca Maestri, during the conference call, said that Walmart would be purchasing 19,000 iPads to train as many as 225,000 of its employees.
While Apple may have made a rare misstep in releasing the clues in the Home Pod firmware, it's also worth noting that nothing has yet been confirmed by the company.