Apple pounds Street with record second quarter iPhone and Mac sales

Apple today announced financial results for its fiscal 2015 second quarter ended March 28, 2015. The Company posted quarterly revenue of $58 billion and quarterly net profit of $13.6 billion, or $2.33 per diluted share. These results compare to revenue of $45.6 billion and net profit of $10.2 billion, or $1.66 per diluted share, in the year-ago quarter. Gross margin was 40.8 percent compared to 39.3 percent in the year-ago quarter. International sales accounted for 69 percent of the quarter’s revenue.

The growth was fueled by record second quarter sales of iPhone and Mac and all-time record performance of the App Store.

“We are thrilled by the continued strength of iPhone, Mac and the App Store, which drove our best March quarter results ever,” said Tim Cook, Apple’s CEO, in a statement. “We’re seeing a higher rate of people switching to iPhone than we’ve experienced in previous cycles, and we’re off to an exciting start to the June quarter with the launch of Apple Watch.”

• iPhone: 61.170 million units, $40.282 billion revenue (vs. 43.719 million units (+40%), $26.064 billion revenue (+55%) YOY)
• iPad: 12.623 million units, $5.428 billion revenue (vs. 16.350 million units (-23%), $7.610 billion revenue (-29%) YOY)
• Mac: 4.563 million units, $5.615 billion revenue (vs. 4.136 million units (+10%), $5.519 billion revenue (+2%) YOY)
• Services: $4.996 billion revenue (vs. $4.573 billion revenue (+9%) YOY) (includes revenue from the iTunes Store, App Store, Mac App Store, iBooks Store, AppleCare, Apple Pay, licensing and other services.)
• Other Products: $1.689 billion revenue (vs. $1,880 billion revenue (-10%) YOY) (includes sales of iPod, Apple TV, Beats Electronics and Apple-branded and third-party accessories.)

“The tremendous customer demand for our products and services in the March quarter drove revenue growth of 27 percent and EPS growth of 40 percent,” said Luca Maestri, Apple’s CFO, in a statement. “Cash flow from operations was also outstanding at $19.1 billion.”

Apple is providing the following guidance for its fiscal 2015 third quarter:
• revenue between $46 billion and $48 billion
• gross margin between 38.5 percent and 39.5%
• operating expenses between $5.65 billion and $5.75 billion
• other income/(expense) of $350 million
• tax rate of 26.3%

Apple will provide live streaming of its Q2 2015 financial results conference call beginning at 2:00 p.m. PDT on April 27, 2015 at www.apple.com/quicktime/qtv/earningsq215.

The consensus estimate from analysts polled by Thomson Reuters calls for Apple to report earnings of $2.16 a share on revenue of $56.08 billion. In the second quarter last year, the company posted earnings of $1.66 a share, which beat analysts’ expectations of $1.46 a share. Revenue of $45.646 billion beat the consensus estimate of $43.563 billion. In January, Apple said sales would total between $52 billion and $55 billion for the three-month period, and gross margin would fall between 38.5% and 39.5%.

The non-GAAP whisper number is $2.31 a share, indicating even more positive underlying sentiment.

MacDailyNews Take: Boom!

AAPL After Hours: $135.03, up $2.38 (+1.79%) @ 4:33PM EDT

36 Comments

    1. Interesting.

      1. iPhone makes up 69% of revenue.
      2. iPad’s taking a beating: down 23% YOY.
      3. Projections for next quarter are $46-$48 billion, $10 billion less than the Apple Watchless quarter. I know Apple likes to undershoot numbers but this indicates to me that they aren’t going to be selling a wack of their brand new product: the Apple Watch. The next quarter should be a screamer. This tells me either they can’t get the supply together to ship substantial amounts of Watches, the demand isn’t there, or a combination of the two.

      1. I think iPad is taking a beating from iPhone 6 Plus.

        Hopefully the partnership with IBM will bear some fruit and iPad will get some corporate sales later this year and next year. A larger-screened iPad Pro may help differentiate its from the large-screen iPhone.

        1. Exactly, the iPhone 6 Plus cannibalized the market of Android settlers who were doing the Galaxy / iPad two step. Also, it’s hard to buy the 6 Plus and an iPad in the same year without the wife looking at me funny.

      2. 3. Projects for the next quarter promise 23-28% YoY growth, which is amazing. If Apple will top its prognosis by couple of billions of USDs as it often times does, the grow rate will be 34%.

      3. Nonsense. Your comment tells me that you don’t understand the concept of growth in business. It will take several years at LEAST before Watch becomes a substantial part of Apples revenues. It took 8 years for iPhone to reach these heights, and watch will likely do extremely well, but it won’t top iPhone revenues, ever.

    1. And will continue to do so, with the new tech that will no doubt trickle UP from the new MacBooks to the MacBook Pro 15.

      The other guys STILL can’t make a decent trackpad and Apple has left them in the dust again.

      1. No kidding about the trackpad. Apple has always ruled that piece of tech, and those on the other side of the fence have no idea what they are missing.

        It amuses me to hear people say “Oh yah, I prefer Microsoft” and then the day they are struggling with their computers, yet again.

      1. You and most of the regular posters here.

        It’s another desperate pathetic tactic to burry and distract from any Apple highlighted fanfare and positive feedback that will surely influence switching to Apple products or more consumer attention to the naked emperors od android .

        You can’t stop it trolls, we all think different.

      2. The REALLY pathetic thing here is that it’s probably just ONE lonely “trollbot wrangler” with nothing better to do. Got to feel a bit sorry for someone like that…

        Today’s mindless task for trollbot seems to be to keep all targeted comments at exactly 3 stars. That’s an improvement… Yesterday, it was 2 stars. But the consistency proves it’s all being done by one person.

        The trollbot is basically a form of malware. It’s quite fitting that malware is the only way to keep up the appearance that there is a hoard of Apple-hating trolls. No hoard here… Apparently, there aren’t enough “real” Apple-haters left; some clever loser has to create a fake “virtual” hoard. 🙂

        1. Yup. The magic number for today is THREE (stars). How “amusing” and utterly simple-minded. Not even clever enough to add a bit of variance to trollbot’s routine. No wonder trollbot’s socially awkward handler has nothing more better to do… not enough worthwhile talent to do anything else. 🙂

  1. Just Few billion short of 200 biilion in cash and equivalant… Amazing !!
    Fantastic yoy growth .. Earning , revenue and margins…
    Mind boggeling!
    Right on Apple !

  2. Added to my position at $114 and again at $119, on margin – maybe time to payoff the margin and have a few extra shares left over but I think I’ll wait until after May 14th or so and collect more dividends!

    1. Yet Amazon was up over 15% when they announced earning …..but they don’t make a profit.

      I keep wondering how long the market will continue admiring Amazon’s glass castle before they actually see through it.

      Sigh…..

      1. Neither will Tesla make any profits. Tesla up 6% because they have a new battery to sell and that will supposedly add $100 a share to the current stock price. Apple shareholders will have to endure another reaming because Apple didn’t sell enough iPads to satisfy Wall Street. I thought Apple would at least get a 2% share boost if it beat expectations. It didn’t even get to my conservative 2%. Amazing times we live in.

        1. AAPL may open significantly higher tomorrow than the current after-hours price.

          But yes, it appears that Wall Street still believes it’s 1996 and Apple might go out of business next year.

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