August 1, 2017 Last Updated 11:58 am

Apple grows iPad sales in Q3 report, total revenue up 7%, China sales slide 10%

The third quarter of fiscal 2017 (second quarter of the calendar year) finally broke the long losing streak for Apple when it comes to the iPad. Apple sold 15 percent more iPad devices in the quarter, those revenue was only up 2 percent. Still, it was the first good news for the tablet in a long, long time.

Overall, it was a pretty ho hum quarter, at least compared to the kind of growth Google and Facebook have been able to report, but it was growth, nonetheless. That allowed investors to breathe a sigh of relief and take the stock higher in after-hours trading.

The other good news was actually contained in the company’s guidance, which was for strong fourth quarter revenue, suggesting that Apple will be able to launch its new iPhones on time and secure those pre-orders.

The only real downside to the report is the continued sales slide in China, where the company reported that revenue was down 10 percent.

So, all-in-all, not really much to report, which is why this is going in the top News section rather than in the features area. Ho hum.

Here is the short earnings statement, reflecting the lack of news:

CUPERTINO, Calif. — August 1, 2017 — Apple today announced financial results for its fiscal 2017 third quarter ended July 1, 2017. The Company posted quarterly revenue of $45.4 billion and quarterly earnings per diluted share of $1.67. These results compare to revenue of $42.4 billion and earnings per diluted share of $1.42 in the year-ago quarter. International sales accounted for 61 percent of the quarter’s revenue

“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 Tim 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.

“We reported unit and revenue growth in all our product categories in the June quarter, driving 17 percent growth in earnings per share,” said Luca Maestri, Apple’s CFO. “We also returned $11.7 billion to investors during the quarter, bringing cumulative capital returns under our program to almost $223 billion.”

Apple is providing the following guidance for its fiscal 2017 fourth quarter:

  • 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

Apple’s board of directors has declared a cash dividend of $0.63 per share of the Company’s common stock. The dividend is payable on August 17, 2017 to shareholders of record as of the close of business on August 14, 2017.

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