Apple (AAPL) Q3 iPhone Sales Up 2%, 41 Million Units Sold

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In a research note reviewing today's Apple earnings announcement, Drexel Hamilton analyst Brian White reiterated a Buy rating on Apple shares, with a price target of $202, which represents a potential upside of 35% from where the stock is now trading.

Apple's net earnings grew to United States dollars 1.67 per share from USD 1.42 a year earlier, and the company maintained its quarterly dividend at 63 cents a share. Apple had said it expected to generate between $43.5 billion and $45.5 billion this quarter, with analysts expecting about the same.

Thanks to strong iPhone sales, Apple reported fiscal third-quarter earnings that beat analyst expectations, on Tuesday.

Apple is expected to overhaul its smartphone lineup in September as it marks the iPhone's tenth anniversary. Profit climbed 12 per cent to Dollars 8.7 billion, and revenue rose per cent to USD 45.4 billion, with the California-based company selling 41 million iPhones in the fiscal third quarter to July 1. ".We're very excited about the advances in iOS, macOS, watchOS and tvOS coming this fall".

Apple sold 41.03 million iPhones in the quarter, up from 40.4 million in the same period a year ago.

The 15 percent increase brings unit sales for Q3 to 11.4 million on revenue of $4.96 billion.

Leading the way was Apple's iPad sales, which were up 15 percent from previous year.

While Apple reports a record revenue for its services, like Apple Music and Apple Pay, Cook said the company hopes exclusive content will boost the number of subscribers.

While Apple was typically tight-lipped about its plans for the next iPhone, Cook and Company's lofty estimates for the Q4 period, anywhere from $49bn-52bn, would suggest they're aiming for huge initial sales of the next handset. Mac sales rose 6.7%, the third consecutive quarter of gains, while iPads stemmed a fourth consecutive quarterly slide with 1.9% growth.

And the company has already announced a product that will go on sale this holiday season. The company itself guided for $43.5 to $45.5 billion in revenue for the latest period.

Profit for the period rose almost 12% to $8.72 billion.

Apple's board of directors has declared a cash dividend of $0.63 per share of the Company's common stock.

Thanks to persistent rumors about next-generation iPhones, sales of the current devices barely grew in the most recent quarter.