- Apple (NASDAQ:AAPL) had an FQ3 gross margin of 39.7%, +30 bps Y/Y and above a 38.5%-39.5% guidance range. FQ4 GM guidance is also at 38.5%-39.5%.
- Product line performance: iPhone revenue (63% of total revenue) +59% Y/Y to $31.4B; units +35%. iPad revenue -23% to $4.5B; units -18%. Mac revenue +9% to $6B; units +9%. Services (iTunes, App Store, AppleCare, Apple Pay, etc.) +12% to $5B. Other products (Apple Watch, iPod, Beats, accessories, etc.) +49% to $2.6B.
- Regional performance: Americas revenue +15% Y/Y to $20.2B. Europe +19% to $10.3B. Greater China +112% to $13.2B. Japan +9% to $2.9B. Rest of Asia-Pac +26% to $3B. International markets made up 64% of revenue vs. 69% in FQ2.
- ASPs: iPhone ASP was $660 vs. $659 in FQ2 and $687 in FQ1. iPad ASP was $415 vs. $430 in FQ2 and $419 in FQ1. Mac ASP was $1,257 vs. $1,231 in FQ2 and $1,258 in FQ1.
- Financials: GAAP SG&A spend rose 25% Y/Y to $3.56B; R&D spend rose 27% to $2.03B. $10B was spent on buybacks, up from FQ2's $7B. Apple ended FQ3 with nearly $203B in cash/investments (much of it offshore), and over $47B in debt.
- Apple has declared its regular quarterly dividend of $0.52/share. The next dividend is payable on Aug. 13 to shareholders on record as of Aug. 10.
- Shares have fallen to $121.60 in AH trading. Earnings call starts at 5PM ET (webcast).
- FQ3 results/FQ4 guidance, PR