Apple signaled to Wall Street that the worst of the iPhone decline is behind it, as it reported another slump in smartphone sales on Tuesday.
The Cupertino-based company has come under pressure to prove that its flagship product can grow again after reporting a 15 per cent drop in iPhones sold in the three months to June. Overall revenues fell 15 per cent to $42.4bn, with net income down 27 per cent to $7.8bn.
Nonetheless, Luca Maestri, Apple’s chief financial officer, said that iPhone sales fell at a slower rate than they had done in March, which he said had “turned out to be the low point for our cycle”. Apple shares rose 5 per cent after-hours on the more positive outlook.
Follow Tim Bradshaw and Richard Waters as they report live reaction to the results and commentary from Tim Cook, Apple chief executive, and Mr Maestri on the conference call with analysts.
Apple more than doubled its sales in China to nudge third-quarter revenues and earnings just ahead of market forecasts. But a shortfall in iPhone sales compared with Wall Street’s forecasts caused the stock to tumble by as much as 8 per cent after-hours on Tuesday. Revenues for the three months ending in June were up 33 per cent to $49.6bn with earnings up 45 per cent to $1.85 – the ninth consecutive quarter that Apple has beaten earnings forecasts. Sales of the iPhone rose 35 per cent to 47.5m units, below the 49m Wall Street was looking for, while Chinese revenues jumped 112 per cent to $13.2bn. Tim Bradshaw brings live reaction to Apple’s earnings and updates from its earnings call with chief executive Tim Cook.
It’s Apple turn to court the app makers, after Google and Microsoft held their developer conferences in recent weeks. This year’s Worldwide Developer Conference is expected to see the unveiling of Apple Music, its new subscription streaming service, following last year’s $3bn acquisition of Beats. There will also be changes to Watchkit, to improve apps for the Apple Watch, and potentially updates to Carplay, Homekit and its TV platform, alongside the usual annual refresh of iOS and Mac OSX.
Tim Bradshaw, Richard Waters and Matt Garrahan will provide live updates from the WWDC keynote at San Francisco’s Moscone Center.
Expectations are high for Apple as it publishes its first-quarter earnings, with analysts forecasting that it sold more than 65m iPhones in the three months to December. With the impact of China looming large but the iPad still looking weak, Tim Bradshaw and Sarah Mishkin bring the news, live updates and analyst reaction from San Francisco.
Apple returned to its old forecast-busting ways on Wednesday, reporting better-than-expected revenue and iPhone growth. Even though iPad sales underwhelmed, Wall Street cheered the second-quarter results with an 8 per cent spike in after-hours trading. Apple also added $30bn in new dividends and share buybacks to its existing $100bn capital return programme, alongside a seven-for-one stock split.
Tim Bradshaw and Sarah Mishkin bring live commentary from Apple’s conference call and reactions from the market.
Facebook is paying up to $19bn in cash, stock and earnouts to acquire WhatsApp Messenger, the world’s most popular mobile chat app with more than 450m regular users. Here Tim Bradshaw and Hannah Kuchler brought live reaction and comment from Facebook’s conference call.
It’s the biggest day in the Apple calendar: the iPhone launch. This year, for the first time, Apple unveiled two new smartphones: the upgraded 5S, with a 64-bit chip and fingerprint scanner, and the all-new 5C, with plastic casing in a handful of colours.
Tim Bradshaw was at Apple’s Cupertino headquarters and April Dembosky reported from San Francisco.
Apple has reported second-quarter earnings that beat analyst expectations, but has disappointed Wall Street with its outlook for the June quarter. The maker of the iPhone reported $43.6bn in revenues and earnings of $10.09 per share, compared with analyst expectations of $42.5bn and $10.07 in earnings per share. Its guidance for $33.5bn to $35.5bn in third-quarter sales though is well below the Wall Street consensus of $38.9bn. Apple has also increased its share buyback authorisation from $10bn to $60bn. Below is our blow-by-blow account of the earnings, analyst call and reaction to the news.
After two quarters of declines, iPhone sales ticked up again in the latest period, to nearly 27m. Meanwhile, iPad sales dropped to 14m as rumours of a new iPad mini spread like wildfire. But for Wall Street, this was just the appetiser: the real banquet will be Apple’s current quarter, when iPhone sales are projected to jump to 50m and iPads to 22m. Speaking on the earnings call, Apple executives sounded optimistic about their ability to ship the new products in high volumes – though they warned that profit margins would suffer a temporary dent.
See below for our blow-by-blow take on the company’s latest earnings call. Read more