On Tuesday Apple shares its third quarter sales figure with the world and crushed the estimates that were given by the analysts earlier. Everyone was thinking the Apple fans were holding back and waiting for the iPhone 8 to launch, but it seems they are still spending plenty on Apple gadgets.
The fiscal third quarter earning shared by the iPhone makers shows the company beats the analyst with the stock rise up to 6% all time-high earning. Apple sold the iPhone more than it expected considering the soft quarter before the iPhone 8 launch. However, the company sold 4.1 million of the iPhones in this quarter and crossed the milestone of 1.2 billion total iPhone sale. The other products of apple also experienced a hike in the sale of this quarter even the Apple watch records 50% increased sale after years.
The share of the Apple raised by 5% in hours and reached $157, the highest ever. The Apple Store also contributed in the company’s immense earning in this quarter.
“If you look at the products, we sold 41 million iPhones, but frankly it's better than that because we also reduced channel inventories by 3.3 million," Apple ,CEO, Tim Cook said to CNBC and added "If you look across the world, we had several markets in Asia, in Latin America, and the Middle East which grew more than 25 percent year on year. If you look at [iPhone] 7 in the [iPhone] 7 Plus, we grew strong double-digit year on year compared to the 6S plus a year ago. So iPhone was terrific."
The new member to take forward the legacy of the iPhone is expected to hit the market soon and scheduled as decided according to its maker. After the unexpected earning in the third quarter, the company and the analyst are expecting more sum up in sale in the name of iPhone 8. The iPhone 8 is expected to come with features like brighter, edge-to-edge screens and augmented reality capabilities. These new features and rumors about its compatibility with the HomePod speakers made people excited about the launch and it is expected to come out in September.
The earning of the tech giant in the next quarter is expected to increase more, Apple forecasts gross margin between 37.5% to 38% for the next quarter. Apple also predicted the next quarter revenue between $49 billion to $52 billion. On the other side, the Analyst poll at Thomson Reuters expert at the Apple forecasts for gross margin is 38.3% and revenue $49.21 billion.
The company also shared that it shipped 11.42 million of iPods against the estimation of 9.03 and 4.29 million of Mac which is lower than what Apple estimated 4.33 million.
Despite the quarter win by unexpected numbers, the company is still facing challenges in the Chinese market. The sales of Apple in China fall 10% year over year this quarter and 14% year over year last quarter. The local rivals like Xiaomi and Huawei are giving a tough competition to the Apple in China.