Transcript: Here’s Everything Tim Cook Said About Apple’s Impressive June Quarter Today

Apple today reported revenue of $45.4 billion and net quarterly profit of $8.7 billion, or $1.67 per diluted share, in its fiscal third quarter ended June 24.

Apple CEO Tim Cook and CFO Luca Maestri discussed the results on a conference call today. MacRumors has prepared a complete transcript of the call ahead.

Tim Cook


Good afternoon, and thanks everyone for joining us. Today, we're proud to announce very strong results for our fiscal third quarter, with unit and revenue growth in all of our product categories. We'll review our financial performance in detail, and I'd also like to talk about some of the major announcements we made in June at our Worldwide Developers Conference. It was our biggest and best WWDC ever, and the advancements we introduced across hardware, software, and services will help us delight our customers, and extend our competitive lead this fall, and well into the future.

For the quarter, total revenue was at the high end of our guidance range at $45.4 billion. That's an increase of 7 percent over last year, so our growth rate has accelerated in three consecutive quarters this fiscal year. Gross margin was also at the high end of our guidance, and we generated a 17 percent increase in earnings per share. iPhone results were impressive, with especially strong demand at the high end of our lineup. iPhone 7 was our most popular iPhone, and sales of iPhone 7 Plus were up dramatically compared to 6s Plus in the June quarter of last year. The combined iPhone 7 and 7 Plus family was up strong double digits year over year. One decade after the initial iPhone launch, we have now passed 1.2 billion cumulative iPhones sold. Continue reading Transcript: Here’s Everything Tim Cook Said About Apple’s Impressive June Quarter Today

Apple Increased AirPods Production Capacity, But Still Unable to Meet Demand

During today's earnings call covering the third fiscal quarter of 2017, Apple CEO Tim Cook briefly mentioned the company's super popular hard-to-come-by wireless earphones, the AirPods.

According to Cook, production capacity has been bumped up, but because of the high level of demand, Apple is still unable to make enough to reach supply/demand balance.
We're also seeing incredible enthusiasm for AirPods. 98 percent customer satisfaction based on Creative Strategy's survey. We have increased production capacity for AirPods and are working very hard to get them to customers as quickly as we can, but we are still not able to meet the strong level of demand.
Priced at $159, Apple's AirPods are wire-free earphones that feature Bluetooth and an Apple-designed W1 chip for a better connection and simple transfers between different devices. AirPods are equipped with an infrared sensor to detect when they're in the ear, and they support a range of touch-based gestures.

Since launch, AirPod supplies have been severely constrained and ship out from the online Apple Store in the U.S. in six weeks. That six week mark has not budged since December, but Apple retail stores occasionally have them in stock as do third-party retailers like Best Buy.


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Apple Increased AirPods Production Capacity, But Still Unable to Meet Demand

During today's earnings call covering the third fiscal quarter of 2017, Apple CEO Tim Cook briefly mentioned the company's super popular hard-to-come-by wireless earphones, the AirPods.

According to Cook, production capacity has been bumped up, but because of the high level of demand, Apple is still unable to make enough to reach supply/demand balance.
We're also seeing incredible enthusiasm for AirPods. 98 percent customer satisfaction based on Creative Strategy's survey. We have increased production capacity for AirPods and are working very hard to get them to customers as quickly as we can, but we are still not able to meet the strong level of demand.
Priced at $159, Apple's AirPods are wire-free earphones that feature Bluetooth and an Apple-designed W1 chip for a better connection and simple transfers between different devices. AirPods are equipped with an infrared sensor to detect when they're in the ear, and they support a range of touch-based gestures.

Since launch, AirPod supplies have been severely constrained and ship out from the online Apple Store in the U.S. in six weeks. That six week mark has not budged since December, but Apple retail stores occasionally have them in stock as do third-party retailers like Best Buy.


Discuss this article in our forums

Tim Cook Says Apple is ‘Very Focused on Autonomous Systems’

It's no secret that Apple is working on an autonomous driving system, thanks to statements from Apple CEO Tim Cook, information published by the DMV, and the presence of Apple's autonomous test vehicles on the road, but during today's earnings call, Cook re-emphasized Apple's deep interest in the technology, and he even hinted Apple's work on autonomy could be used for more than vehicles.

"In terms of autonomous systems, what we've said is that we are very focused on autonomous systems from a core technology point of view," Cook said. "We do have a large project going, and we're making a big investment in this from our point of view."


Cook went on to call autonomy "the mother of all AI projects," a statement he's shared before in an interview with Bloomberg. Cook also hinted that Apple has other autonomous projects in the works beyond a car system.

"Autonomous systems can be used in a variety of ways -- a vehicle is only one, but there are many different areas of it. And I don't want to go any further with that," he said.

Apple has presumably been working on an autonomous driving system since 2014, when rumors of its efforts to create an electric vehicle first surfaced. Apple has now moved away from creating a full vehicle and is said to be focusing on self-driving technology instead.

Since April, Apple has been testing its autonomous driving system in several Lexus RX450h SUVs, which can be spotted on the roads around its Cupertino headquarters.

Related Roundup: Apple Car
Tags: Tim Cook, earnings

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Apple CEO Tim Cook Evades Questions on Alleged Plans to Build Three ‘Big’ U.S. Factories

Last week, United States President Donald Trump told The Wall Street Journal that Apple had plans to build three "big, big, big" manufacturing plants in the United States, a statement that allegedly came from Apple CEO Tim Cook.

Unsurprisingly, Cook was questioned about the president's statement during the question and answer portion of today's earnings call, and he deftly dodged it by highlighting Apple's overall efforts to increase jobs in the United States.

Apple CEO Tim Cook at the Executive Tech Summit at Trump Tower in December of 2016

Cook said Apple has created two million jobs in the United States, across three separate categories. The first, responsible for about 2/3rds of those jobs, is the App Store and the Apple developer community.

Cook said Apple is making an enormous effort in this area by encouraging children and college students to get into coding through Swift-based curriculum that's been introduced in schools around the world.

The second category, according to Cook, is Apple's manufacturing purchases. Last year, Apple purchased $50 billion in goods and services from U.S. based suppliers, and has been aiming to increase that. Apple in May announced a $1 billion Advanced Manufacturing Fund meant to encourage innovation among U.S.-based manufacturers. Corning became the first recipient of the fund in mid-May, and Cook says the money will be used to expand the company's Kentucky plant to make innovative glass.

"There are several plants that can benefit from having some investment to grow, expand, or set up ship in the U.S. for the first time," said Cook. "We're excited."

The third category relates to Apple's own facilities in the United States, like its Cupertino-based campuses that employ thousands of employees. Cook didn't have much to say about this category, but he hinted at announcements coming later this year, potentially giving some weight to Trump's statement about job creation.

"Two thirds of our employee base is in the United States, despite only one third of revenue being here," Cook said. "We have some things we'll say about that later in the year."

Cook said that Apple does feel that it has a responsibility to create jobs in the United States. "We do view that we have a responsibility in the United States to increase economic activity and increase jobs. Apple could only have been created here," Cook said.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.


Discuss this article in our forums

Apple CEO Tim Cook Evades Questions on Alleged Plans to Build Three ‘Big’ U.S. Factories

Last week, United States President Donald Trump told The Wall Street Journal that Apple had plans to build three "big, big, big" manufacturing plants in the United States, a statement that allegedly came from Apple CEO Tim Cook.

Unsurprisingly, Cook was questioned about the president's statement during the question and answer portion of today's earnings call, and he deftly dodged it by highlighting Apple's overall efforts to increase jobs in the United States.

Apple CEO Tim Cook at the Executive Tech Summit at Trump Tower in December of 2016

Cook said Apple has created two million jobs in the United States, across three separate categories. The first, responsible for about 2/3rds of those jobs, is the App Store and the Apple developer community.

Cook said Apple is making an enormous effort in this area by encouraging children and college students to get into coding through Swift-based curriculum that's been introduced in schools around the world.

The second category, according to Cook, is Apple's manufacturing purchases. Last year, Apple purchased $50 billion in goods and services from U.S. based suppliers, and has been aiming to increase that. Apple in May announced a $1 billion Advanced Manufacturing Fund meant to encourage innovation among U.S.-based manufacturers. Corning became the first recipient of the fund in mid-May, and Cook says the money will be used to expand the company's Kentucky plant to make innovative glass.

"There are several plants that can benefit from having some investment to grow, expand, or set up ship in the U.S. for the first time," said Cook. "We're excited."

The third category relates to Apple's own facilities in the United States, like its Cupertino-based campuses that employ thousands of employees. Cook didn't have much to say about this category, but he hinted at announcements coming later this year, potentially giving some weight to Trump's statement about job creation.

"Two thirds of our employee base is in the United States, despite only one third of revenue being here," Cook said. "We have some things we'll say about that later in the year."

Cook said that Apple does feel that it has a responsibility to create jobs in the United States. "We do view that we have a responsibility in the United States to increase economic activity and increase jobs. Apple could only have been created here," Cook said.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.


Discuss this article in our forums

Apple Has Now Sold Over 1.2 Billion iPhones

During today's earnings call covering the third quarter of 2017, Apple CEO Tim Cook announced that Apple has now sold 1.2 billion cumulative iPhones since the device was first introduced in 2007.

Apple sold its 1 billionth iPhone back in July of 2016, so in the last year, the company has sold another 200 million devices. According to Apple's earnings results, iPhone sales were at 41 million devices in the third quarter alone, bringing in more than $24.8 billion.


According to Apple CEO Tim Cook, sales of the current-generation iPhone 7 Plus have been impressive and are "up dramatically" compared to sales of the iPhone 6s Plus in 2016. Sales of both the iPhone 7 and the iPhone 7 Plus are up "strong double digits" compared to the year-ago quarter.

Since the iPhone was introduced in 2007, Apple has introduced new features and improvements with each successive device. This year, we're expecting to see Apple unveil the iPhone 8, a radically redesigned device with an edge-to-edge OLED display, no Home button, and a new front-facing camera system that enables facial recognition technology.

Tag: earnings

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Apple’s iPad Sales Up 15% Year-Over-Year in 3Q 2017

Apple in June introduced new 10.5 and 12.9-inch iPad Pro models with new features like a faster processor and an improved ProMotion display with a 120Hz refresh rate, and it appears these new tablets are appealing to consumers.

Apple sold over 11.4 million iPads during the third quarter of 2017, according to today's earnings results, bringing in nearly $5 billion in revenue for the company.


That's up 15 percent from the third quarter of 2016, where Apple sold just under 10 million iPads. Compared to the second quarter of 2017, iPad sales are up an impressive 28 percent, indeed suggesting the new iPad Pro models have been a hit.

Apple also released a low-cost revamped "iPad" earlier this year, and its $329 price tag combined with a speedy A9 processor may also be driving iPad sales. iPad sales may climb even higher next quarter as the new iPad Pro models were introduced towards the end of the third quarter in June.

At 11.4 million iPads sold, Apple far exceeded analyst expectations. Many analysts forecasted a decline in sales, predicting Apple would sell only 7 to 9.8 million iPads during the quarter.

Prior to mid-2016, Apple saw a 10 quarter decline in iPad revenue, but numbers have climbed since the introduction of the iPad Pro and Apple's effort to position it as a full PC replacement.


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Apple Reports 3Q 2017 Results: $8.7B Profit on $45.4B Revenue, 41M iPhones, iPad Sales Up 28% Over Last Quarter

Apple today announced financial results for the third fiscal quarter of 2017, which corresponds to the second calendar quarter of the year. For the quarter, Apple posted revenue of $45.4 billion and net quarterly profit of $8.7 billion, or $1.67 per diluted share, compared to revenue of $42.4 billion and net quarterly profit of $7.8 billion, or $1.42 per diluted share, in the year-ago quarter.

Gross margin for the quarter was 38.5 percent compared to 38 percent in the year-ago quarter, with international sales accounting for 61 percent of revenue. Apple also declared a quarterly dividend payment of $0.63 per share, payable on August 17 to shareholders of record as of August 14.


Apple sold 41 million iPhones during the quarter, up slightly from 40.4 million a year earlier, while Mac sales rose slightly to 4.29 million units from 4.25 million units in the year-ago quarter following the introduction of a number of updated Macs in June.

iPad sales saw a significant increase on the strength of new iPad Pro models released late in the quarter and a low-cost iPad earlier in the year, rising to 11.42 million from 9.95 million. iPad unit sales were up 28 percent compared to the previous quarter and 15 percent year-over-year.
“With revenue up 7 percent year-over-year, we’re happy to report our third consecutive quarter of accelerating growth and an all-time quarterly record for Services revenue,” said Tim Cook, Apple’s CEO. “We hosted an incredibly successful Worldwide Developers Conference in June, and we’re very excited about the advances in iOS, macOS, watchOS and tvOS coming this fall.”
Apple's guidance for the fourth quarter of fiscal 2017 includes expected revenue of $49–52 billion and gross margin between 37.5 and 38 percent.


Apple will provide live streaming of its fiscal Q3 2017 financial results conference call at 2:00 PM Pacific, and MacRumors will update this story with coverage of the conference call highlights.

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Tag: earnings

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Apple Expected to Report Second-Best June Quarter Ever Today as Investors Look Ahead to iPhone 8

Apple is set to report its earnings results for the third quarter of its 2017 fiscal year at 1:30 p.m. Pacific Time today.

Apple provided the following guidance for its third quarter on May 2:

• 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

That guidance suggests Apple will report its second-best third quarter earnings results in the company's history. The quarter corresponds with March 26, 2017 through June 24, 2017.

Apple's Fiscal Third Quarter

• 2013: $35.3 billion
• 2014: $37.4 billion
• 2015: $49.6 billion
• 2016: $42.3 billion
2017: $43.5+ billion

Wall Street's consensus is that Apple will report approximately $44.9 billion revenue and earnings per share of $1.57, according to dozens of estimates averaged by Thomson Reuters and Yahoo Finance.

Apple is forecasted to have sold 40.7 million iPhones, 9 million iPads, and 4.3 million Macs, according to average estimates shared by Wells Fargo, compared to 40.4 million, 9.95 million, and 4.25 million respectively in the year-ago quarter.


MacRumors.com compiled third quarter estimates from several financial institutions and analysts tracking Apple and the company's stock. The figures are listed below, ranked from highest to lowest in quarterly revenue.


All signs point to Apple reporting an above-average and generally unsurprising June quarter. The most interesting takeaway will be Apple's fourth quarter guidance and any clues that provides about the so-called iPhone 8.

In addition to iPhone sales, investors will be looking for continued growth of Apple's services category, which includes the likes of the App Store, iTunes Store, Apple Music, Apple Pay, AppleCare, and licensing fees.

Apple CEO Tim Cook and CFO Luca Maestri will discuss the company's financial results on a conference call at 2:00 p.m. Pacific Time. MacRumors.com will transcribe the call as it unfolds for those unable to listen.

Tags: earnings, AAPL

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