Apple Business News

Apple’s Q3 2017 Earnings: The iPad is Back

Apple just announced its fiscal Q3 2017 earnings, and it goes to show what Apple’s doing with the iPad is working. The company brought in $45.4 billion revenue over $50.6 billion collected last quarter. $8.72 billion of that is all profit. This is thanks to the company selling 41 million iPhones, 4.29 million Macs, and 11.4 million iPads.

Let’s look at that last statistic. Compared to last quarter, Apple has sold 3.11 million more iPads. That’s really good, and I can only think the reason behind this is due to more people buying the $329 9.7-inch iPad. People are also likely buying the iPad Pro thanks to what’s coming in iOS 11. We don’t have exact numbers to work off of in this case, but it’s plain to see these must be two reasons we’re seeing a spike in the number of iPads sold.

And that’s saying a lot. The iPad hasn’t sold well in recent memory, and that’s likely due to people either not upgrading or simply not seeing a significant enough reason to buy what’s on the market today. But now that there’s an ultra-cheap option available and there’s a stronger reason to go Pro what with iOS 11, it makes sense that more people are probably interested in what Apple’s doing in the tablet market.

For comparisons, Apple sold 50.7 million iPhones and 4.19 million Macs last quarter. The reason the former is larger is non-debateable: people are waiting for the next iPhones in September. Regarding the latter, Apple did just upgrade its entire Mac lineup at WWDC so it would make sense to see people buy the new machines in recent times.

A statement from CEO Tim Cook says Apple is seeing an all-time record for Services revenue this quarter.

“With revenue up 7 percent year-over-year, we’re happy to report our third consecutive quarter of accelerating growth and an all-time quarterly record for Services revenue,” said Time Cook, Apple’s CEO. “We hosted an incredibly successful Worldwide Developers Conference in June, and we’re very excited about the advances in iOS, macOS, watchOS, and tvOS coming this fall.”

Apple is also providing the following guidance for its final fiscal quarter of 2017:

  • revenue between $49 billion and $52 billion
  • gross margin between 37.5 percent and 38 percent
  • operating expenses between $6.7 billion and $6.8 billion
  • other income/(expense) of $500 million
  • tax rate of 25.5 percent
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Max Buondonno is a technology enthusiast who has been working as a journalist in this industry for more than two years. He has grown up in the age where everyone has a smartphone which has influenced his decision to become a professional technology writer, his passion in life. He's dipped his toes in the development of websites, while you can ask him anything about Apple, Google, or Microsoft and he's bound to give you an answer. He's reachable on Twitter, Facebook, Google+, LinkedIn, and email.

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