Apple earnings preview: All eyes on iPhone 8

Ann Santiago
August 3, 2017

If the release of the next iPhone was going to be delayed until October or even later, analysts were expecting Apple to lower its revenue projections for the current quarter to below $45 billion.

Ahead of Tuesday's report, Apple shares had gained more than 28% this year, bringing its market cap to north of $770 billion making it the world's largest publicly traded company.

Apple's September-quarter sales forecast implies that the company will not be late with the iPhone 8 launch, as has been rumored, RBC Capital Markets analyst Amit Daryanani said in a report titled "What iPhone Delay?"

While Apple is remaining characteristically tight-lipped about what the next iPhone will look like, it's expected the new phones will have edge-to-edge displays, competing with the sleek recent releases from Samsung.

During the announcement, Apple shared that this quarter iPad sales were strong, reaching 11.4 million units sold, and that Mac sales hit 4.3 million, up slightly from the same period in past year.

The growth came thanks in part to product debuts at the company's Worldwide Developers Conference (WWDC) in June, which should "extend [Apple's] competitive lead this fall and well into the future", CEO Tim Cook said during the quarterly earnings call on Tuesday.

Apple sold 41.03 million iPhones in the quarter, up from 40.4 million in the same period previous year. Against the analyst's prediction of only 7 to 9.8 million, Apple was able to push the total iPad sales to 11.4 million units, adding $5 billion alone from the sales of these iPads. Macs were up almost 1% to 4.29 million.

Apple's services continue to grow, seeing a 22% increase year-over-year.

Revenue from other products, such as the Apple Watch, Apple TV and Beats headphones, also jumped 23% year-on-year. The impending launch of the 10 anniversary iPhone is also expected to hit sales of existing models, as people wait to upgrade. Overall, these numbers are Apple's best growth in seven quarters and the tech giant's second consecutive quarterly increase coming off an approximately year-long downturn.

IPad sales finally got back on track after Apple released a number of new models, including a 10.5-inch iPad Pro and a new, cheaper iPad starting at only $329.

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