Nov 1, 2018

Apple's earnings soar, but iPhone sales miss estimates

Apple CEO Tim Cook this week at a product launch event in Brooklyn. Photo: Stephanie Keith/Getty Images

Apple reported record sales and profits for the September quarter, though unit sales for the iPhone were lower than some analysts were looking for. Meanwhile, its revenue from services topped $10 billion for the first time.

Why it matters: Apple is the world's highest-valued company and its results are closely watched as a signal of the health of the tech industry, though its success can sometimes be an outlier. Earnings this quarter from some other tech companies have failed to meet Wall Street expectations.

Apple reported per-share earnings of $2.91, on revenue of $62.9 billion, compared to analysts expectations of $2.79 and revenue of $61.49 billion. The company saw double- digit gains in revenue from last year in every part of the world, led by Japan, where sales were up 34 percent.

Shares nonetheless fell in initial after-hours trading following the report, changing hands recently at $212.12, down $10.10, or more than 4%.

Outlook: For the coming quarter, which includes the all-important holiday shopping season, Apple said to expect revenue of between $89 billion and $93 billion and gross profit margins between 38 percent and 38.5 percent. Analysts were expecting sales of roughly $91 billion, per Zacks.

By the numbers (with year-over-year change):

  • iPhone units 46.9 million (flat)
  • IPhone revenue $37.2 billion (up 29%)
  • IPad units 9.7 million (down 6%)
  • IPad revenue $4.1 billion (down 15%)
  • Mac units 5.3 million (down 2%)
  • Mac revenue $7.4 billion (up 3%)

Go deeper

In photos: Authorities issue warning as Americans venture out for Memorial Day weekend

Ocean City in New Jersey on May 25. Photo: Donald Kravitz/Getty Images

Authorities urged Americans to maintain social distancing and wear masks to protect against the spread of the novel coronavirus amid reports of packed beaches and bars during the Memorial Day weekend.

Details: Law enforcement stepped up beach patrols, and there were crowded scenes in several places, notably at Lake of the Ozarks bars in Missouri and at Daytona Beach and on the Gulf Coast in Florida, per AP. Police dispersed crowds in some places, ABC notes. But many Americans did take precautions against COVID-19 as they ventured outside for the long weekend, some three months after the pandemic began in the U.S.

Coronavirus stay-at-home orders crater voter registration efforts

A volunteer looks for persons wanting to register to vote on July 4, 2019 in Santa Fe, N.M. Photo: Robert Alexander/Getty Images

The coronavirus pandemic is scuppering usual "get out the vote" efforts, leading to fears that large swaths of Americans could miss out on this year's elections.

What’s happening: Advocacy groups typically target college campuses, churches, festivals, fairs and other gatherings to seek out people who have yet to register, but many of those places are now closed. Voter registration efforts have largely moved to the internet, but advocates question whether that will be as effective as the person-to-person pitch.

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 7 p.m. ET: 5,471,768 — Total deaths: 344,911 — Total recoveries — 2,223,523Map.
  2. U.S.: Total confirmed cases as of 7 p.m. ET: 1,660,072 — Total deaths: 98,184 — Total recoveries: 379,157 — Total tested: 14,604,942Map.
  3. World: Italy reports lowest number of new cases since February — Ireland reports no new coronavirus deaths on Monday for the first time since March 21 — WHO suspends trial of hydroxychloroquine over safety concerns.
  4. 2020: Trump threatens to move Republican convention from North Carolina — Joe Biden makes first public appearance in two months.
  5. Public health: Officials are urging Americans to wear masks over Memorial Day.
  6. Economy: New York stock exchange to reopen its floor on Tuesday — White House economic adviser Kevin Hassett says it's possible the unemployment rate could still be in double digits by November's election — Charities refocus their efforts to fill gaps left by government.
  7. What should I do? Hydroxychloroquine questions answeredTraveling, asthma, dishes, disinfectants and being contagiousMasks, lending books and self-isolatingExercise, laundry, what counts as soap — Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingHow to minimize your risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it, the right mask to wear.

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Updated 1 hour ago - Politics & Policy