Apple (AAPL) has released the company's Q3 2015 financial results and the big numbers are: 47.5 million iPhones sold, 10.9 million iPads sold, 4.8 million Macs sold, and 10.7 billion in profit earned.
It's not a holiday quarter. It's not the quarter after a holiday quarter. But those are still some good numbers. As previously announced, Apple didn't break out Apple Watch numbers, just like they haven't been breaking out Apple TV numbers. Apple CEO, Tim Cook:
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. 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.
Apple will be conducting its usual quarterly conference call at 2pm PT / 5pm ET.
Here's the full release.
iPhone, Apple Watch, Mac & App Store Drive Revenue Growth of 33%
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.
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."
"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.
This press release contains forward-looking statements including without limitation those about the Company's estimated revenue, gross margin, operating expenses, other income/(expense), and tax rate. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the effect of competitive and economic factors, and the Company's reaction to those factors, on consumer and business buying decisions with respect to the Company's products; continued competitive pressures in the marketplace; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company's gross margin; the inventory risk associated with the Company's need to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company's business currently obtained by the Company from sole or limited sources; the effect that the Company's dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; risks associated with the Company's international operations; the Company's reliance on third-party intellectual property and digital content; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; the Company's dependency on the performance of distributors, carriers and other resellers of the Company's products; the effect that product and service quality problems could have on the Company's sales and operating profits; the continued service and availability of key executives and employees; war, terrorism, public health issues, natural disasters, and other circumstances that could disrupt supply, delivery, or demand of products; and unfavorable results of legal proceedings. More information on potential factors that could affect the Company's financial results is included from time to time in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's public reports filed with the SEC, including the Company's Form 10-K for the fiscal year ended September 27, 2014, its Form 10-Q for the fiscal quarter ended December 27, 2014, its Form 10-Q for the fiscal quarter ended March 28, 2015, and its Form 10-Q for the fiscal quarter ended June 27, 2015 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.
Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, the Mac and Apple Watch. Apple's three software platforms — iOS, OS X and watchOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay and iCloud. Apple's 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it.
Reader comments
Apple Q3 2015: 47.5m iPhones, 10.9m iPads, and 4.8m Macs sold; 10.7b in profit
I disagree with the suggestion here that these are the numbers "people want to know." Unless every one of your readers is an investor (highly unlikely) these are simply the numbers tech journalists want to know, not your actual readers.
Possibly this is why there are often few comments on these oh so "important" articles about sales figures and finance.
Well said ! In the meantime, we'll pay a premium on their phones etc. and further still if we accidentally drop one - and then celebrate them making more money !
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Insure your phone then.
It's the same as if you crash your car and it isn't insured then you have to buy another and the car company gets more money.
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Did you enjoy reading it?
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You should be an investor. For those of you that swear by apple gear, you should own the stock. You think that shiny iphone or macbook will help you in retirement?
Here's a comment. Great!
iPhone sales didn't match the number that analysts pulled out of...let's just say thin air, so Apple is DOOMED!!!
The Investment & Tech press is going to bet up on Apple for not releasing Watch numbers... and it will be merciless.
AAPL down 8% in after hours trading. Go figure.
i think this is the reason. They expected $5 bill revenue from other products and only got $2.9b. And China was lower than expected.
"Apple also reported $2.6 billion in revenue for a category it calls “Other Products.” The category — which includes products like the iPod ... the Apple Watch.
Before the report, analysts had estimated that if revenue in the category exceeded $5 billion, it would be a sign that Apple had sold at least five million watches, much higher than the number of iPhones and iPads that were sold in their first quarters on the market. That sales performance, analysts say, is a litmus test for whether Apple can continue successful product introductions since the death in 2011 of Steve Jobs...
“There’s a belief that, look, at some point iPhone units will slow,” said Toni Sacconaghi, a financial analyst for Sanford C. Bernstein. “What’s going to make up for that? And the hope is, could it be the watch?”" http://www.nytimes.com/2015/07/22/technology/apple-earnings-q3.html
Additionally "Yet sales of the iPad, which have experienced a decline in the last year, continued to shrink. " http://www.nytimes.com/2015/07/22/technology/apple-earnings-q3.html
From what i'm gathering investors, are wondering what's next or Apple to justify it's price. They'd hoped it was the ipad. Those sales are declining, they'd hoped it was the Apple Watch, and the numbers don't indicate its good enough to justify price. What they have is the iphone and they already had good iphone earnings. Hence the sell off. Also, you're gonna have investors taking profits after earnings and selling.
But the goal of fans is to like the product. The goal of investors is to buy a stock at a good value. They just aren't the same and stock prices fluctuated. It's nothing a phone fan should really care about.
In the meantime we'll continue to pay them a premium on their phones etc; further still if we drop one accidentally - and then celebrate them making more money !
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So important you had to repeat yourself?
Trolls gotta troll you know. It must be boring in those Android forums so they gotta come here.
Sorry bout the repeat - it was an accident - was having trouble posting.
Just saw the double post... :)
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Seriously, I heard you the 1st time you posted the exact comment. If this was an accident...it happens to everyone but If you are going to comment again whether good or bad add something that contributes to the conversation thread.....
Wow! June sales HIGHER for the watch than April or May...
Don't get TOO excited... Without actual numbers to put it in context, that's a relatively meaningless statement. :)
Apple MAKES $10.7 billion and the stock tanks after hours. Microsoft LOSES $3.2 billion and nobody cares.
Some just cashed in profits, some sold because they were disappointed in the revenue spread, which I understand. It's gonna go back to normal, especially with Fall approaching.
But good to know you're still in that Apple/MS school yard frame of mind. Tell me, who was better, Prince or MJ?
Crazy stuff. Google has a decent and not disappointing quarter and and their stock goes up $100 bucks PER share the next day and Apple continues to deliver unrivaled EPS and revenue and it is down in after hours trading...! Oh well, I own both stocks...well not anymore I sold my google and profited! Will buy back on a dip! Not to mention they sold more apple watches than all the android watches combines but that is another story...and yes, I am big android supporter.
you have a source for how many Apple watches sold? Apple sure didn't state it.
Only idiots care about stock prices. Apple should pull a Dell and get out from under Icahn and go private.
Or, you know, people who invest. I bet anyone who bought in on Apple doesn't feel too idiotic these days.
The problem is the apple fans don't get how the stock market works. And they take a down market as some sort of indictment of their choice to by an apple phone rather than what it is, an adjustment of the perceived fair price of a stock.
Ironic that you say others don't get it but then turn around and buy the myth that the post-earnings drop was an adjustment based on fair pricing. People took their profit pre-drop, others bought the stock at a discount the next day, and some did both. It was pure manipulation and it happens nearly every single quarter.
Or idiots who learn to make idiotic comments on a website...
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As per the latest results, 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.