As excitement for the new iPhone 8 builds, Apple has released its third fiscal quarter financial results in which the company reported revenue of $45.4 billion and $1.67 in earnings per share.
In light of the giant’s strong performance, Apple stock gained a 6% increase during after-hours trading. This boost comes with announcements of a new iPhone 8 expected next month.
The company said it has been experiencing year-on-year growth of 7% leading up to this latest set of results, and Apple pointed to features such as Apple Pay as drivers of success in this latest quarter.
Sales of iPhone remained strong, increasing by 2% in spite of expectations of an announcement of a new model, while iPads also continued to prove popular, with revenues increasing by 2%.
Geoff Blaber, Vice President Research, Americas, CCS Insigh, said: “The June quarter is always the low point for the year as iPhone demand slows ahead of new September iPhone announcements. Nonetheless, it was a solid quarter despite slowing iPhone demand in the face of mounting expectations for the 10th anniversary launch”
“Apple delivered a solid quarter firmly in line with expectation. All eyes are on the new iPhone product launches and the scope for a later October launch for the flagship. Apple has shown a remarkable ability to manage supply chain and ramp new iPhone models but a delay will add pressure to fulfill pent up demand in the last calendar quarter of the year,” said Blaber.
Apple has also been in the spotlight due to impending fines, a patent dispute in the United States for example has resulted in a court ordered fine of $506 million, Apple intends to defend itself against this ruling however.
Blaber said: “China remains a concern despite the generally strong earnings. Competition from domestic players is intensifying and it’s clear that its ecosystem advantage in the West is far harder to replicate as powerfully in the East where Tencent and others dominate… Apple’s Services business continues to be the shining light. Not only is $7.3 billion in revenue hugely significant in its own right, it underlines the ecosystem advantage it has over its competitors outside of China.”