Apple Q2 profit rises 12% on higher sales of iPhones

Thursday, 03 Aug, 2017

Just recently Apple reported the third quarter earnings of the company.

Apple, which announced the financial results for its third quarter (April - June) on Tuesday, said that it had sold 41 million iPhones during the three-month period, slightly higher than the last year's sale of 40.4 million units.

The move is seen by some as an effort to assure investors that the company's fortune doesn't rest exclusively on sales of iPhones, which have been its main revenue driver.

The tech giant also recorded a 7% hike in revenue from the same period a year ago to hit $45.4 billion revenue.

The iPhone continues to be Apple's main moneymaker. iPad sales have been on a long decline.

Apple's CFO Luca Maestri said that a weak price was explained in part by Apple reducing the flow of its inventory by over 3.3 million units that were all at the high-end of the iPhone's range.

Chief executive officer, Tim Cook focused on the achievements of Apple's services division, which covers both the App Store and Apple Music. The high numbers are indicative of a new iPhone model looming right around the corner, with an announcement likely to take place in September or October.

Lastly, he talked about SAP and how it released SuccessFactors Mobile to support 47 million iPhone and iPad users worldwide in different industries.

The news sent the share price up to a record $159 a share, according to The Guardian, adding almost $40bn to the value of the company to take the total to over $820bn. Looking ahead to the fourth quarter, Apple expects revenue between $49 billion and $52 billion, suggesting the usual iPhone launch toward the end of September. We created 2 million jobs in the U.S. We do view that we have a responsibility to increase economic activity in the United States, including creating jobs, because Apple could only have been created here.

Apple reports the number of phones that it sells to phone retailers and not the number of phones sold to consumers.

Tim Cook admitted once again that iPhone 8 rumors are hurting iPhone 7 sales. Adjusted earnings per share were up at $1.67, beating Wall Street expectations.

There's been much speculation about the actual release date of the iPhone 8, with many analysts predicting the handset would be delayed until year-end.