Apple releases Q3 earnings

Apple revealed the current state of its sales and growth for Q3 2015.

Joseph Lambert, Published 07/22/2015

On Tuesday, Apple released its earnings for the June quarter and talked about its growth in different regions. The Americas are still the highest revenue earner for the company, rising about 15% to generate $20.2 billion. China saw the biggest growth in terms of revenue, skyrocketing an amazing 112% since last year, earning the company $13.2 billion. Overall, since Q3 2014, Apple has seen a 33% increase in profits alone, with over $49.6 billion in revenue.

Many have been wondering about the success or failure of the Apple Watch launch. In the press release, Apple calls the Watch a product with a successful launch, and Tim Cook himself said that June has seen the strongest sales for the wearable. Apple attributes the success and revenue increase over last year to the great iPhone and Mac sales, with the iPhone increasing by 59% in sales as compared to Q3 2014. The earnings per share also went up by 45% over the course of the year.

It seems as though the Cupertino-based technology company is doing quite well in 2015. With a successful wearable launch and incredibly strong smartphone sales, revenue is higher than ever before for Apple. With a new iPhone on the way in the fall and a few new software releases coming up for the Mac and mobile devices as well, everything seems to going very well. Though some analysts believe Apple's success can only go on for so long, the company is determined to consistently outperform itself year after year, and has done just that.

+ Show Press Release

Press Release

Apple Reports Record Third Quarter Results

iPhone, Apple Watch, Mac & App Store Drive Revenue Growth of 33%

CUPERTINO, California — July 21, 2015 — 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.

Press Contact:
Kristin Huguet
Apple
khuguet(at)apple.com
(408) 974-2414

Investor Relations Contacts:
Nancy Paxton
Apple
paxton1(at)apple.com
(408) 974-5420

Joan Hoover
Apple
hoover1(at)apple.com
(408) 974-4570