Apple Expected to Report Its Best Third Quarter Ever Today

aapl logo 2018Apple is set to report its earnings results for the third quarter of its 2018 fiscal year at 1:30 p.m. Pacific Time today.

The quarter began April 1, 2018 and ran through June 30, 2018, according to Apple's fiscal year accounting calendar.

Apple provided the following guidance for the quarter back on May 1:

  • revenue of $51.5 billion to $53.5 billion

  • gross margin between 38 and 38.5 percent

  • op. ex. of $7.7 billion to $7.8 billion

  • other income/expense of $400 million

  • tax rate of approximately 14.5 percent

Apple's guidance suggests it will report its best third quarter results ever, by revenue, comfortably topping its 2015 record of $49.6 billion:

  • 2014: $37.4 billion

  • 2015: $49.6 billion

  • 2016: $42.4 billion

  • 2017: $45.4 billion

  • 2018: $51.5+ billion

Wall Street analysts forecast that Apple will report $52.3 billion revenue, meeting roughly the midpoint of its guidance, and earnings per share of $2.18, according to 29 estimates averaged by Yahoo Finance.

Key Takeaways and What to Look For

  • iPhone unit sales of around 41.7 million, according to a FactSet estimate.

  • Apple doesn't break out iPhone sales on a model-by-model basis, but the iPhone's average selling price should reveal whether the iPhone X remains Apple's best selling iPhone model since it launched, or if sales have slowed. iPhone ASP was $728 last quarter. $606 in year-ago quarter.

  • iPad unit sales should be boosted by the new sixth-generation 9.7-inch iPad, released March 27, just four days before the third quarter.

  • Apple's guidance for its fourth quarter, which runs from July 1 through September 29, as new iPhones will likely be available to order during the final two weeks of the quarter. Analysts expect revenue of $59.5 billion, based on 29 estimates averaged by Yahoo Finance.

  • Apple's comments on the trade war between the United States and China, and what impact it could have on Apple products, if any.

  • Continued growth of Apple's Services category, including the App Store, Apple Music, iCloud, iTunes, Apple Pay, and AppleCare. Loup Ventures expects Services growth of 19 percent on a year-over-year basis.

  • Continued growth of Apple's Other Products category, including the Apple Watch, Apple TV, HomePod, AirPods, Beats, iPod touch, and accessories, as Apple diversifies revenue beyond the iPhone.

Apple's CEO Tim Cook and CFO Luca Maestri will discuss the company's earnings results on a conference call at 2:00 p.m. Pacific Time today. MacRumors will loosely transcribe the one-hour call as it occurs live.

Tags: AAPL, Earnings

Top Rated Comments

now i see it Avatar
73 months ago
As Apple's wealth increases, the Mac user experience goes down the toilet. Funny how that works.
Score: 6 Votes (Like | Disagree)
OldSchoolMacGuy Avatar
73 months ago
Apple is doomed. Fire Tim Cook. /s
Score: 5 Votes (Like | Disagree)
arkitect Avatar
73 months ago
As Apple's wealth increases, the Mac user experience goes down the toilet. Funny how that works.
So true.

Look, I want Apple to be successful. But this level of success tends to make a company (or a person) complacent… and that is where I find myself at odds with Apple.

A huge multi billion (trillion?) company resting on its laurels… in this case the success of the iPhone.

I yearn for the Apple with iCEO Jobs at the helm. Kicking arse and reinventing themselves. Great products and leading the way…

*shrug*
Score: 4 Votes (Like | Disagree)
I7guy Avatar
73 months ago
Here come the stockholders with their doomed sarcasm rubbish.

Great for you and the execs who already don’t need more millions, but at best, utterly meaningless to consumers. At worst, it emboldens Apple to keep up with the gouging, which is clearly detrimental to the consumer.
I didn’t think Apple was forcing you to buy their products. There are “great” android phones available for half the price.
Score: 4 Votes (Like | Disagree)
OldSchoolMacGuy Avatar
73 months ago
Well, I can tell you that I deleted my FB account as soon as that Cambridge Analytica shenannagin became public
Good for you. The numbers show that very very few did. Like less than 100,000. It wasn't nearly as big of a deal (from that standpoint) as people made it out to be. #DeleteFacebook was a huge failure.
Score: 3 Votes (Like | Disagree)
travelsheep Avatar
73 months ago
€1200 for a phone, €3000 for a entry level MacBook Pro, €100 for the yearly developer license, keeping a 30 % cut on every app sale ... no surprises here
Score: 2 Votes (Like | Disagree)

Popular Stories

iOS 17

10 New Things Your iPhone Can Do in Next Week's iOS 17.4 Update

Friday March 1, 2024 1:30 am PST by
Apple will this month release iOS 17.4, its biggest iPhone software update of the year so far, featuring a number of features and changes that users have been anticipating for quite a while. Below, we've listed 10 new things that your iPhone will be able to do after you've installed the update, which is projected to arrive by March 7. When the day arrives, be sure to check Settings ➝...
Apple Maps vs Google Maps Feature

Apple Maps vs. Google Maps: Which Is Better?

Friday March 1, 2024 7:10 am PST by
Apple Maps has been providing navigational guidance to Apple users for almost 13 and a half years now, and much has changed about the app in that time. However, according to data from Canalys, the overwhelming majority of iPhones in the U.S. still have Google Maps downloaded as an alternative to Apple Maps, which comes preinstalled on all iPhones. We want to hear from MacRumors readers. Which do...
apple tv plus banner

Apple TV+ Gains Over 50 Movies for a Limited Time

Friday March 1, 2024 6:29 am PST by
Apple TV+ today gained over 50 movies, adding to its back catalog of content for a limited time. The collection includes a large number of popular and classic titles. Subscribers can access the movies in a "Great Movies on Apple TV+" section in the Apple TV app. Some titles are also available in 3D. Movies in the collection include: 21 Jump Street 300 American Sniper Argo ...
airpods pro 2 pink

Apple Releases New Beta Firmware for AirPods Pro 2

Thursday February 29, 2024 11:41 am PST by
Apple today introduced a new beta firmware update for the AirPods Pro 2, both the USB-C and Lightning versions. The new firmware is version 6E188, up from the prior 6B34 firmware released in December. Apple does not often provide details or notes on what features might be included in the refreshed firmware, so it is unclear what's new. Note that this software is limited to developers at the...
iOS 18 Mock Feature Baubles

Will Your iPhone Support iOS 18? Here's What the Latest Rumor Says

Thursday February 29, 2024 7:29 am PST by
iOS 18 and iPadOS 18 are still over three months away from being unveiled, but we may already know which devices will be compatible with the updates. iOS 18 will be compatible with the same iPhone models as iOS 17, meaning that the iPhone XS, iPhone XS Max, and iPhone XR from 2018 will remain supported for at least another year, according to information shared this week by a source with a...
iPad Pro OLED Feature 2

OLED iPad Pro's Thin Design Highlighted in CAD Drawings

Wednesday February 28, 2024 1:22 pm PST by
Apple is working on a new version of the iPad Pro that is set to launch as soon as March, and the refresh will mark the biggest design update to the Pro lineup since 2018. Apple is transitioning to OLED displays, and the swap will allow for a major change to the overall thickness of the device. CAD drawings of the upcoming ~11-inch and ~13-inch iPad Pro models give us some insight into just...