Key Financial Data
- Overall revenue: $102.5 billion (+8% year-over)
- iPhone sales: $49.03 billion (+6%)
- Services revenue: $28.75 billion (+15%)
- EPS: $1.83 (+13%)
- Read more coverage of Q3 media earnings
Apple saw higher-than-expected revenue during the third financial quarter (Q3) of the year, boosted in large part by strong retail sales of its newest iPhone coupled with higher demand for its various subscription products.
The California-based tech company earned $102.47 billion in overall revenue during Q3, up 8 percent compared to the same time period last year.
Of that, $49.03 billion was attributed directly to iPhone sales, with its iPhone 17 and iPhone 17 Pro models flying off store shelves thanks in large part to carrier deals. (Sales of Apple’s iPhone 17 Air have been more-tepid, according to reports.)
iPhone sales fell short of Wall Street expectations — analysts were hoping for something closer to $50.2 billion in sales — but it didn’t seem to matter much, with Apple’s stock price increasing modestly during after-hours trading.
Services-based revenue jumped to $28.75 billion, up 15 percent compared to last year. Apple sells various subscriptions, including Apple TV (formerly Apple TV Plus), Apple Music, Apple Arcade and Apple Fitness, at different price points. An all-inclusive service called Apple One offers bundled access to many of those services, plus digital storage through its iCloud service. Apple also offers extended warranty plans for its devices through a product called Apple Care, which is rolled into its service-based business.
Stock Price
On the entertainment side, Apple benefitted from strong summer box office ticket sales for “F1: The Movie,” its breakout feature-length film starring Brad Pitt produced in partnership with Formula 1. Apple saw $629 million in worldwide box office revenue from the film, which will start streaming on Apple TV in December. The movie pushed open the door for Apple to snag domestic TV rights to Formula 1 races from Disney’s ESPN, with Apple TV set to start offering live events in January.
Other Apple shows that had a strung run include “The Studio” starring Seth Rogen, which earned more than a dozen Emmy Awards last month, breaking the record for the most Emmy wins in the Comedy category by a single show. (The honor was previously, and controversially, bestowed upon Disney’s “The Bear” — another coup for Apple.) “Severance,” a cult favorite, won eight Emmys and “Slow Horses” took home one.
The cost of Apple TV Plus increased to $13 per month in August, though some streamers have access to the service through other means: Comcast offers the service through a novel bundle called Stream Saver, which pairs Apple TV Plus with the ad-supported tiers of Peacock and Netflix for $15 per month. The plan is only available within Comcast’s service footprint, and only to customers of its Xfinity Internet or Xfinity TV services. During Q3, another bundle launched that offers Apple TV Plus and Peacock for the same $15 per month, available to anyone in the U.S. Some broadband and wireless providers, including T-Mobile, offer Apple TV Plus in some consumer plans.
On a conference call with investors, Apple CEO Tim Cook said Q4 is expected to be the tech company’s biggest-ever as it continues to see strong sales from the iPhone 17 family of smartphones. Total revenue is likely to increase by as much as 12 percent, Apple Chief Financial Officer Kevin Parekh said.
