Why Apple doesn't want a big revenue beat — TODAY'S CHARTS

TODAY'S CHARTS: Why Apple doesn't want a big revenue beat

Apple Q3 2017 Results: $45.4 Billion Revenue, 41 Million iPhones, 11.4 Million iPads Sold

Growth in iPhone revenues accelerated to 3 percent to Dollars 24.85 billion, compared to only 1 percent annual growth in the previous quarter. Wall Street was modeling for Apple to earn $1.81 a share on sales of $49.21 billion.

A 21.6% jump in the company's services business - which includes the App Store, Apple Pay and iCloud - to $7.27 billion helped boost revenue.

Apple says it sold 41 million iPhones last quarter, posting its third straight quarter of accelerating revenue growth. Those sales topped analyst estimates of 40 million.

The growth came thanks in part to product debuts at the company's Worldwide Developers Conference (WWDC) in June, which should "extend [Apple's] competitive lead this fall and well into the future", CEO Tim Cook said during the quarterly earnings call on Tuesday.

Apple still clearly has its challenges.

Apple said its gross profit margin would be between 37.5% and 38% in its fiscal fourth quarter, compared with 38% in the same quarter a year ago.

The company sold 11.4 million iPads, up 14.8%. Revenue in this segment increased from $2.2 billion to $2.7 billion.

Based on the data he released, "Other Products" revenue of $2.7 million would translate into Apple Watch sales of only 2.3 million, which would be very weak indeed. Last quarter, Apple sold 11.42 million iPads.

There was no immediate word in the earnings press release about the next iPhone. Analysts are looking for sales of $49.3 billion for the period, which would be a 5% uptick year-over-year.

A higher figure would suggest Apple is confident the new iPhones are on track to launch in September. That means they tend to have only a small impact on Q4 earnings.

Many customers wait for Apple to launch its new smartphones before deciding on upgrading or replacing their current devices, which usually results in iPhone demand tapering in the months before a release.

Apple is expected to overhaul its smartphone lineup in September as it marks the iPhone's tenth anniversary.

Overall, investors were clearly thrilled with the performance in Q3 and the optimistic outlook.

The strong results announced on Tuesday send the share price of the tech company up by six per cent in after hours trading, Efe news reported.

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