This afternoon, Apple announced their earnings for the third quarter of their 2017 fiscal year. Revenue grew 7% year-over-year to $45.408 billion USD for the three months ending July 1, 2017, with a gross margin of 38.5%. Operating income was $10.77 billion for the quarter, up 6.6% from a year ago. Net income was $11.31 billion, up 11.8% as well. This resulted in earnings per share of $1.67, up from $1.42 a year ago.

Apple Q3 2017 Financial Results (GAAP)
  Q3'2017 Q2'2017 Q3'2016
Revenue (in Billions USD) $45.408 $52.896 $42.358
Gross Margin (in Billions USD) $17.488 $20.591 $16.106
Operating Income (in Billions USD) $10.768 $14.097 $10.105
Net Income (in Billions USD) $8.717 $11.029 $7.796
Margins 38.5% 38.9% 38.0%
Earnings per Share (in USD) $1.67 $2.10 $1.42

Apple has been the iPhone company for pretty much a decade now, and at time, Apple has been somewhat dependant on the iPhone for most of its earnings. That’s the case again this quarter, but Apple as a company is much more diversified now than even a year or two ago when iPhone revenues could account for over 70% of their earnings. This quarter, iPhone brought in $24.85 billion in revenue, which works out to 54.7% of Apple’s revenue. iPhone revenue was up 3% year-over-year, with unit sales of 41.026 million phones, up 2% from a year ago.

Services has quickly jumped from being an afterthought at the company, to now being their number two source of revenue, surpassing both the Mac and the iPad. Services revenue jumped 22%, to $7.27 billion. The iPhone ecosystem is a strong draw for many Apple customers, clearly.

Mac sales were only up 1% year-over-year, which is a bit surprising since they hadn’t yet launched their new laptops a year ago, but revenue was up 7% to $5.59 billion, so revenue-per-device is up nicely. Apple sold 4.29 million Macs in the last three months.

iPad has been the one sore spot for Apple for several years now, with slowing sales, but earlier this year, Apple announced a new, lower cost, entry level iPad. This strategy has paid off, at least for the interim, with iPad sales up 15% in terms of units sold. Apple sold 11.42 million iPads last quarter, compared to just 9.95 million a year ago. Revenue was only up 1% though, thanks to the lower cost of these entry level devices.

Apple Q3 2017 Device Sales (thousands)
  Q3'2017 Q2'2017 Q3'2016 Seq Change Year/Year Change
iPhone 41,026 50,763 40,399 -19% +2%
iPad 11.424 8,922 9,950 +28% +15%
Mac 4,292 4,199 4,252 +2% +1%

Other Products, which includes Beats, Apple TV, Apple Watch, and accessories, also had a very strong quarter, with revenue up 23% year-over-year to $2.73 billion. Apple doesn’t break down individual sales inside of Other Products though, but Apple did say Apple Watch sales were up 50% in the quarter. Up from what, we’re not sure, but obviously a big jump regardless.

For the fourth quarter of fiscal year 2017, Apple is expecting revenue between $49 and $52 billion, with a gross margin between 37.5 and 38 percent.

Source: Apple Investor Relations

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  • YazX_ - Thursday, August 3, 2017 - link

    no need, just use adblock same as you are doing and will be fine for ages.
  • Bullwinkle J Moose - Wednesday, August 2, 2017 - link

    Those are some very interesting opinions about which Operating System is best for each of the posters at this site, but you may want to get a screen grab of my opinion before it gets censored again without any "VALID" reason

    As the leading security expert on the planet, I do not use Spyware Platforms!

    AnandTech can easily verify for you that I am posting right now with with Windows XP-SP2

    I do not have ANY critical security updates from Microsoft to backdoor this system

    Flash/Java and Adobe Reader malware does not exist on this system

    Net Framework and Silverlight malware is also forbidden

    The O.S. is Read Only (Driveshield)

    I haven't had a blue-screen of death in more than 10 years

    I am immune to wannacry / Petya and all other forms of extortionware

    I'm Not worried about viruses / rootkits or any other malware

    I have publicly dared the NSA / Russian hackers / Chinese Hackers / Israeli Hackers and everyone else to wreck this Box

    You will find these posts here at Anandtech and other sites

    A fresh install of XP boots from a Samsung 850 Pro in 3-4 seconds on a 35 Watt dualcore Sandy Bridge

    Fully loaded, it boots in 12 seconds

    The Antivirus expired over a year ago and I'm not worried one bit

    I'm not jealous that Microsoft and Apple copied many of my security tweaks
    Quite the opposite......
    You can download lame ass apps from your Slavemaster if you wish while I run secure portable apps of my choice

    Word to the wise >
    If you cannot find the backdoors your apps are creating in Win 10, try a better firewall like Glasswire

    You have no idea how badly you are F%^ked and THAT is the problem, not the solution

    You believe you are smart by following the advice of those who enslave you but I know better

    Next time, just ask the expert!

    Bullwinkle J Moose
  • chipguy_619 - Wednesday, August 2, 2017 - link

    That was a waste of 20 seconds. I kept waiting for your point, pertaining to the article.
  • BurntMyBacon - Friday, August 4, 2017 - link

    @Bullwinkle J Moose: "I have publicly dared the NSA / Russian hackers / Chinese Hackers / Israeli Hackers and everyone else to wreck this Box"

    1) What incentive do they have to take you up on this dare? Seems like a single target without a posted address and no known information of worth would require an up front reward to garner any interest.
    2) What incentive do they have to inform you if they managed to break into your system? If they already have any information of worth, and they managed to do it stealthily, why would they tell you? They may want to come back later to check if there is anything new of worth.

    @Bullwinkle J Moose: "As the leading security expert on the planet ... "

    One would think the "leading security expert on the planet" would be more inclined to share just exactly how he secured his system. Bragging about how you are immune to <insert exploit here> and how you did it without the help of <insert standard security related software here> on an operating system with known vulnerabilities identified by <insert people not the OS vendor here> does little to tell me how you mitigated the existing known vulnerabilities or protect yourself from future vulnerabilities. It also fails to convey what compromises in functionality are required.

    I can see that there are a few pieces of software you avoid (Flash, Java, et al), some software you feel is unimportant (antivirus), and some that you like (Glasswire, Driveshield), but you haven't said a word of you general security posture, configuration of said software or what other software you might be using, known vulnerability mitigation, or what software you use (if any) to replace lost functionality.

    @Bullwinkle J Moose: "You have no idea how badly you are F%^ked and THAT is the problem, not the solution"
    You seem plenty interested in bragging about our lack of understanding (the problem as you state it) vs your security invulnerability on a system that for all I know could be in a closet gathering dust for the last 10 years (you never stated from where you are posting). However, you seem to have little interest in fixing that lack of understanding (the problem). So here's the deal, I will take exactly as much interest in fixing the problem as you do. I'll check back later to see if your level of interest has improved.
  • BurntMyBacon - Monday, August 7, 2017 - link

    Guess I shouldn't have expected much given your last post was a day prior. Oh, well. Though, it does kinda beg the question: If you don't see and respond to posts on the same site as, in the same thread as, and even in direct response to posts you've already made, why would you expect someone else (NSA / Russian hackers / Chinese Hackers / Israeli Hackers) to see and respond to a challenge in a thread on a site they've not even visited?
  • Bullwinkle J Moose - Thursday, August 3, 2017 - link

    Chipguy_619 says....
    "That was a waste of 20 seconds. I kept waiting for your point, pertaining to the article. "

    The point as jimbo2779 says......
    "Each platform has a lot to like and a lot to dislike. It all comes down to preference really."

    This is why everyone here was stating their preferences instead of commenting directly on the content of the article

    Just the1st page of comments speak of....
    Core M
    Surface Pro
    Note 10
    Pentium Quad Core
    Surface 3
    Core i3 U
    Samsung Tab Pro S
    and limiting yourself to UAW Apps

    Following the comments and not the article is sometimes what we do hare at Anandtech

    My personal preference for XP is simply due to the added security I can get with it when it is modified correctly

    I also like the fact that I am not limited to an app store

    I haven't had a blue screen of death in over 10 years

    I can reject the dictates of Microsoft when it comes to security and I can close the backdoors that you cannot do in Windows 7 / 8 or Spyware Platform 10

    My wife prefers an iPhone and I prefer a flip-phone with a removable battery

    but lets get back to your point chipguy_619......

    What did you think about the article ?
  • speculatrix - Thursday, August 3, 2017 - link

    4.3 millions Macs in a quarter isn't really that many, Dell sold 9.56M PCs, HP sold 13.1M, if I understand the various reports correctly.
  • ThreeDee912 - Saturday, August 5, 2017 - link

    "Mac sales were only up 1% year-over-year [...] but revenue was up 7% to $5.59 billion, so revenue-per-device is up nicely"

    I'm generally a fan of Apple products, but the latest MacBook Pro refresh was kind of a mess.

    I could deal with the change to USB-C, but the prices on everything basically jumped by a crazy $300-400. 15" base model was $2000, now $2400. $13 base model was $1200, now it's $1500.

    I'm guessing "revenue-per-device is up" only due to the increased price of everything.

    I've been waiting to upgrade my old MacBook Pro for a while now, but I'm still waiting to see if Apple will drop the price of their MacBook Pro line a bit. They refreshed the lineup back in June but prices are still the same. I'm starting to get annoyed at Apple for both the long refresh cycles and the price increases.
  • ThreeDee912 - Saturday, August 5, 2017 - link

    Actually apparently they released a lower-cost version of the 13" model in June, but gimped it with only 128GB SSD. Really, Apple?

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