Apple earnings impress with record Q3 revenue

Apple on Tuesday released its earnings for the June quarter of 2014 and the results were, by most metrics, exceedingly positive. For the quarter gone by, Apple posted revenue of $37.4 billion (a Q3 record) and earnings per share of $1.28. Analysts on Wall Street were anticipating earnings of about $1.23.

Product-wise, Apple sold 35.2 million iPhones this quarter compared to 31.2 million units during the same quarter a year ago, a modest increase during what is typically Apple's slowest and most uneventful quarter. What really caught analysts off-guard is that Apple's quarterly Mac sales increased by a whopping 18%, with Apple selling 4.4 million units over the last three months.

The one question mark within Apple's earnings report were its iPad sales, which declined from 14.6 million units in the year-ago quarter to 13.3 million units in the current quarter.

In a press release, Apple CEO Tim Cook said:

Our record June quarter revenue was fueled by strong sales of iPhone and Mac and the continued growth of revenue from the Apple ecosystem, driving our highest EPS growth rate in seven quarters.

We are incredibly excited about the upcoming releases of iOS 8 and OS X Yosemite, as well as other new products and services that we can’t wait to introduce.

Looking ahead, Apple's revenue guidance for its next quarter is between $37 billion and $40 billion. The takeaway here is that Apple's next-gen iPhone likely won't hit store shelves until late September. If Apple thought it might be released earlier, the revenue guidance would be noticeably higher.

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