Apple Sells Whopping 17 Million iPads in Q3 – Still Misses Wall Street Expectations due to Lower iPhone Sales

Apple just released financial results for its fiscal 2012 third quarter and while the company once again posted strong sales numbers for the iPad, the company missed overall Wall Street forecasts due to poor iPhone sales.

While iPad Apple iPad sales were strong, Apple sold a record 17 million units compared to analysts estimates of 16 million units for the quarter, iPhone sales fell short of expectations. Apple reported profits of $9.32 per share which was below Wall Street’s consensus of $10.37.

Apple sold 26 million iPhones in Q3 which was nearly 2 million fewer units from what Wall Street analysts had predicted.  Apple attributed the decline to seasonality of iPhone sales and “rumor and speculation of new products.”

Apple reported revenue totaling $35.0 billion and a net quarterly profit of $8.8 billion.  This compares to Apple’s revenue of $28.6 billion and net quarterly profit of $7.3 billion for the same quarter in the previous year. Apple also reported a cash dividend of $2.65 per share of the Company’s common stock.

Apple TV saw a 170% year-over-year sales increase with Apple selling 1.3 million units this past quarter.  Although this strong growth brought the company’s total fiscal year sales to 4 million units, Apple CEO Tim Cook said Apple TV remains an important “hobby” for the company.

“We’re thrilled with record sales of 17 million iPads in the June quarter,” said Cook. “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,” said 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.”

Apple also reported an increase in Gross Margins this quarter of  42.8 % compared to 41.7% for the same quarter last year.

Full Apple Press Release

Apple Reports Third Quarter Results

17 Million iPads Sold

Board Declares Quarterly Dividend of $2.65 per Common Share

CUPERTINO, California—July 24, 2012—Apple® today announced financial results for its fiscal 2012 third quarter ended June 30, 2012. The Company posted quarterly revenue of $35.0 billion and quarterly net profit of $8.8 billion, or $9.32 per diluted share. These results compare to revenue of $28.6 billion and net profit of $7.3 billion, or $7.79 per diluted share, in the year-ago quarter. Gross margin was 42.8 percent compared to 41.7 percent in the year-ago quarter. International sales accounted for 62 percent of the quarter’s revenue.

The Company sold 26.0 million iPhones in the quarter, representing 28 percent unit growth over the year-ago quarter. Apple sold 17.0 million iPads during the quarter, an 84 percent unit increase over the year-ago quarter. The Company sold 4.0 million Macs during the quarter, a two percent unit increase over the year-ago quarter. Apple sold 6.8 million iPods, a 10 percent unit decline from the year-ago quarter.

Apple’s Board of Directors has declared a cash dividend of $2.65 per share of the Company’s common stock. The dividend is payable on August 16, 2012, to stockholders of record as of the close of business on August 13, 2012.

“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,” said 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.”

Apple will provide live streaming of its Q3 2012 financial results conference call beginning at 2:00 p.m. PDT on July 24, 2012 at www.apple.com/quicktime/qtv/earningsq312. This webcast will also be available for replay for approximately two weeks thereafter.

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