
Apple Reports Third Quarter Results - ucha
https://www.apple.com/newsroom/2017/08/apple-reports-third-quarter-results/
======
chollida1
Some fun facts from the earnings report and call:

What they reported by the numbers:

\- declared a cash dividend of $0.63 per share of the company’s common stock.
The dividend is payable on Aug. 17, 2017

\- Revenue: $45.4 billion, up 7% YOY

\- Adjusted EPS: $1.67, up from $1.42 in Q316

\- iPhone units: 41 million sold, up 2% YOY

\- iPad units: 11.4 million, up 15% YOY

\- Mac units: 4.3 million, up 1% YOY

\- Services revenue: $7.3 billion, up 22% YOY

\- Other Products revenue: $2.7 billion, up 23% YOY

\- Q4 Forecast: Revenue between $49 and $52 billion

\- Greater China is Apple's only major region to report a revenue decline --
down 10% from last year's Q3, at just over $8 billion. Greater China also saw
a 25% quarter-over-quarter decrease, while the Americas only saw a 4% quarter-
over-quarter decline.

Where growth is coming from:

\- Apple says it generated $7.3 billion in revenue on services, which includes
the App Store and Apple Music. That's 22% more than the $6 billion in the
year-ago quarter.

\- Apple announces revenue of $2.7 billion from other products, including
Apple Watch, Apple Pay and Apple TV. It was $2.2 billion in the year-ago
quarter. This represents 23% growth for the category. It's likely that the
HomePod will become part of this category in the December quarter.

~~~
ChuckMcM
The iPad Pro 10.5 appears to be a solid upgrade and has many users upgrading.
Not a repeatable bump though AFAICT.

If you were on the call did they break out the cost of building/moving-into
the new HQ? I was trying to guess the chance of a 'down' year when they didn't
refresh enough hardware.

~~~
ericabiz
There is massive iPad growth in the small business sector. If you walk into a
restaurant these days, it's pretty common to see three or four iPads sitting
on the counter. Seems like every service like Amazon Prime Now or GrubHub
requires its own iPad.

Daycares are also big consumers of iPads that allow parents to see pictures of
their kids at school.

Many small businesses are now using Square to accept payments, which requires
an iPad at every cash register.

Technically, for all or most of these purposes, an Android tablet would work
equally well. But people still think "iPad" when a tablet is required.

~~~
coralreef
Interesting. It makes sense that businesses want to be associated with strong
brands. Using an lesser known tablet brand at their point of sales / customer
interaction tool might make them look cheap.

~~~
mtl_usr
I've met people that were scared of Square as it "didn't look like a genuine
POS".

I guess using an iPad could make the consumer feel safer. Than again a "Pro"
looking case for the Android tablet might also do the trick.

~~~
coralreef
If I didn't know what Square was I'd be suspicious too.

Swiping your credit card into a dongle attached to the audio jack of an
iPhone/iPad. Seems legit.

------
ihuman
Macstories has some great graphs with the new (and old) data. [0] SixColors
also has some graphs, [1] and a transcript of the conference call. [2]

[0]
[https://www.macstories.net/news/apple-q3-2017-results-45-bil...](https://www.macstories.net/news/apple-q3-2017-results-45-billion-
revenue-41-million-iphones-million-11-ipads-sold/)

[1]
[https://sixcolors.com/post/2017/08/apples-q3-fy17-financial-...](https://sixcolors.com/post/2017/08/apples-q3-fy17-financial-
results/)

[2] [https://sixcolors.com/post/2017/08/live-transcript-apple-
exe...](https://sixcolors.com/post/2017/08/live-transcript-apple-executives-
talk-to-analysts-after-3q17-results/)

~~~
Froyoh
Damn those charts are beautiful!

------
nodesocket
Once again, the oracle of Omaha got it right. Buffett made a gigantic bet on
Apple in January because he saw it being cheap and undervalued.

Warren talking about the investment
[https://www.youtube.com/watch?v=27nxKovluxE](https://www.youtube.com/watch?v=27nxKovluxE)

~~~
throwaway5752
He also had about the same or more invested in IBM. He's a great investor but
not infallible.

~~~
nodesocket
Yes, but he sold 30% of IBM at around $180ish for what I assume is a nice
hefty profit.

~~~
adventured
His cost basis was $170 [1]. It's a modest profit as a percentage, and he's
now close to underwater on his entire investment into IBM due to the drop (the
~$2 billion in dividends he has yielded, may keep him over break-even, unless
IBM plunges again).

[1] [https://www.cnbc.com/2017/01/19/warren-buffetts-ibm-stake-
wa...](https://www.cnbc.com/2017/01/19/warren-buffetts-ibm-stake-was-in-the-
black--briefly.html)

~~~
valuearb
Pretty sure he's not losing sleep over where IBM is today.

If he still owns it, he's still bullish on it.

------
zitterbewegung
The TLDR; of the results is that they beat their Q3 estimates. Others have a
good summary of their earnings report (or see
[https://seekingalpha.com/symbol/AAPL/news](https://seekingalpha.com/symbol/AAPL/news)
) .

------
sixQuarks
I think they have 5.2 billion shares outstanding, so that means they made
close to $9 billion in PROFIT just in this quarter.

That's enough to buy Stripe in cash, in just 3 months. Crazy

~~~
cakedoggie
On a good quarter they will make over $18 billion profit.

------
ben174
I remember reading somewhere that these results would make it easier to
determine when the next iPhone was launching. I wonder what the outcome is
there.

~~~
AceJohnny2
> _make it easier to determine when the next iPhone was launching._

You mean it might not be around September 20 like the last 5 generations? (5:
2012-09-21, 5s: 2013-09-20, 6: 2014-09-19, 6s: 2015-09-25, 7: 2016-09-16)

The iPhone 4 was 3 weeks later on 2011-10-14. Only the SE was released not
released in Fall, on 2016-03-31

~~~
glasshead969
There was some speculation this year may be delayed because of supply issues
with OLED panels.

~~~
MBCook
The speculation I've heard is that there will be a 7S and 7S+ basically the
normal date, with some new high-end "iPhone pro" (the supposed OLED one) that
may not be able to ship at the same time and may come out a month or two
later.

