iPad sells 17 million but Q3 earnings fail to meet expectations
Apple stock down as "only" 26 million iPhones were sold during the quarter
Apple has just announced its third-quarter earnings for the period ended on June 30, and the numbers largely missed expectations, except for the iPad which sold 17 million versus a street consensus of 16 million. Overall, revenues were up from $28.6 billion to $35 billion (missing street estimate of $37 billion) and profit climbed from $7.3 billion to $8.8 billion, or $9.32 per share (missing street estimate of $10.36).
The iPhone sold through 26 million units, but that was also below the street estimate of 29 million. Consequently, Apple's stock is already trading down five percent in after hours.
Even though the company didn't meet street expectations iPhone still saw 28 percent unit growth over the year-ago quarter, and the iPad jumped by 84 percent over the year-ago quarter. Apple is naturally very pleased with its iPad success, and its rumored that an iPad Mini will be launching this fall, which could drive iPad growth even higher.
"We're thrilled with record sales of 17 million iPads in the June quarter," said Tim Cook, Apple's CEO. "We've also just updated the entire MacBook line, will release Mountain Lion tomorrow and will be launching iOS 6 this Fall. We are also really looking forward to the amazing new products we've got in the pipeline."
"We're continuing to invest in the growth of our business and are pleased to be declaring a dividend of $2.65 per share today," added Peter Oppenheimer, Apple's CFO. "Looking ahead to the fourth fiscal quarter, we expect revenue of about $34 billion and diluted earnings per share of about $7.65."