May 2, 2017

Apple earnings topped estimates, though iPhone sales were below expectations

Ina Fried, author of Login

Eric Risberg / AP

Apple reported quarterly earnings that exceeded expectations, however its sales of 50.7 million iPhones was down slightly from last year and somewhat less than many analysts were expecting.

Overall, its quarterly revenue matched expectations, at $52.9 billion roughly matched what analysts were expecting. Net income topped $11 billion, or $2.10 per diluted share, ahead of expectations of around $2.01, according to Zacks.

Greater China was the geographic weak spot, with revenue down 14 percent from a year ago, with all other regions showing growth (and double-digit growth except for Japan).

Here are some other key stats for the quarter:

  • Mac sales (units): 4.2 million
  • iPad sales (units): 8.9 million
  • Services revenue: $7.0 billion

For the current quarter, Apple said to expect revenue of between $43.5 billion and $45.5 billion and gross profit margins between 37.5 percent and 38.5 percent. Analysts had been targeting revenue of around $45 billion, according to Zacks.

The bottom line: Even though iPhone sales didn't meat the rosiest of projections, Apple had a pretty good quarter overall with other products and services revenue picking up the slack. However, it wasn't a blockbuster and shares traded slightly lower in initial after-hours trading after the report.

Expand chart
Data:; Chart: Andrew Witherspoon / Axios

Go deeper

Trump says he will campaign against Lisa Murkowski after her support for Mattis

Trump with Barr and Meadows outside St. John's Episcopal church in Washington, D.C. on June 1. Photo: Brendan Smialowski/AFP via Getty Images

President Trump tweeted on Thursday that he would endorse "any candidate" with a pulse who runs against Sen. Lisa Murkowski (R-Alaska).

Driving the news: Murkowski said on Thursday that she supported former defense secretary James Mattis' condemnation of Trump over his response to protests in the wake of George Floyd's killing. She described Mattis' statement as "true, honest, necessary and overdue," Politico's Andrew Desiderio reports.

5 hours ago - World

The president vs. the Pentagon

Trump visits Mattis and the Pentagon in 2018. Photo: Brendan Smialowski/AFP via Getty

Over the course of just a few hours, President Trump was rebuffed by the Secretary of Defense over his call for troops in the streets and accused by James Mattis, his former Pentagon chief, of trampling the Constitution for political gain.

Why it matters: Current and former leaders of the U.S. military are drawing a line over Trump's demand for a militarized response to the protests and unrest that have swept the country over the killing of George Floyd by police.

New York Times says Tom Cotton op-ed did not meet standards

Photo: Avalon/Universal Images Group via Getty Images)

A New York Times spokesperson said in a statement Thursday that the paper will be changing its editorial board processes after a Wednesday op-ed by Sen. Tom Cotton (R-Ark.), which called for President Trump to "send in the troops" in order to quell violent protests, failed to meet its standards.

Why it matters: The shift comes after Times employees began a coordinated movement on social media on Wednesday and Thursday that argued that publishing the op-ed put black staff in danger. Cotton wrote that Trump should invoke the Insurrection Act in order to deploy the U.S. military against rioters that have overwhelmed police forces in cities across the country.