Apple’s Q3 Earnings, iPhone Sales Beat Analyst Expectations

Some have doubted whether Apple can continue the momentum it had when Steve Jobs was CEO, but it looks like the tech giant is chugging along with better-than-expected earnings and strong iPhone sales.

For the quarter ended June 30, Apple beat Wall Street expectations with $35.3 billion in sales and earnings of $6.9 billion ($7.47 per share). Wall Street forecasted $35 billion in sales with earnings of $7.32 per share. 

Apple also proved Wall Street wrong when it came to iPhone sales. The company sold 31.2 million of the iOS-powered smartphones for the third quarter, beating Wall Street expectations of 26 million. 

However, Apple fell short of expectations when it came to sales of other devices. While Wall Street predicted sales of 17 million iPads, 4 million Macs and 6.8 million iPods for the quarter, Apple only sold 14.6 million iPads, 3.8 million Macs and 4.5 million iPods.

Still, the increased iPhone sales is a good sign for Apple, considering many believe that the iPhone is becoming outdated thanks to the various options provided by Android-powered Samsung smartphones like the Galaxy S4. Reports indicate that Apple is even trying to test different screen sizes (4.7-inch and 5.7-inch iPhones, and a 13-inch iPad) and options for its future generations of iPhones — a move that mirrors actions taken by the likes of Samsung. 

“We are especially proud of our record June quarter iPhone sales of over 31 million and the strong growth in revenue from iTunes, Software and Services,” said Tim Cook, Apple’s CEO. “We are really excited about the upcoming releases of iOS 7 and OS X Mavericks, and we are laser-focused and working hard on some amazing new products that we will introduce in the fall and across 2014.”

Looking forward, Apple expects revenue between $34 and $37 billion with a margin between 36 and 37 percent. 

Apple shares jumped 3.57 percent to $433.94 in after-hours trading. 

Apple has been changing its ways in a few areas regarding its gadgets — aside from considering screen sizes other than the standard 3.5 and 4-inch versions — such as the possibility of a more affordable iPhone. Reports say it could have a $99 price tag and could come in a variety of colors. 

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