Apple 2Q17 earnings news keep investors satiated

Apple has cemented its second fiscal quarter with net earnings in-line with analyst targets at $52.9 billion, a 5 percent improvement from last year. Gross margin was marked at 38.9 percent.

Stores sold 50.76 million iPhones from January to March deriving $33.25 billion in revenue, bringing raw average sales price per unit was $654. Year-on-year, results on both counts were flat.

The company also checked out 8.9 million iPads, a 13 percent decline, and about the same percentage loss in revenue. Mac sales saw a 4 percent uptick to 4.2 million units with a 14 percent jump in revenues, no doubt thanks to the new models that debuted in the fall. The “Other” category — which includes Apple TV, Apple Watch, Beats, iPods and accessories — saw a 31 percent hike in revenues.

Services are also up 18 percent year-on-year, though down 2 percent sequentially to $7.04 billion.

The company announced that it is expanding its Capital Return Program, which began in August 2012, for another fiscal year. A sum of $50 billion was given to investors this quarter, bringing the current program total to $211 billion. Infinite Loop hopes to wrap the program with a total of $300 billion by the end of March 2019.

Apple forecasts the following for its third quarter:

  • revenue between $43.5 billion and $45.5 billion
  • gross margin between 37.5 percent and 38.5 percent
  • operating expenses between $6.6 billion and $6.7 billion
  • other income/(expense) of $450 million
  • tax rate of 25.5 percent

AAPL shares rose 0.6 percent by end of trading.

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About The Author
Jules Wang
Jules Wang is News Editor for Pocketnow and one of the hosts of the Pocketnow Weekly Podcast. He came onto the team in 2014 as an intern editing and producing videos and the podcast while he was studying journalism at Emerson College. He graduated the year after and entered into his current position at Pocketnow, full-time.