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Apple Inc. Reports Another Record Quarter As iPhone 7 Delivers

Apple released its latest earnings report after closing bell tonight, posting $3.36 per share in earnings on $78.35 billion in sales. Analysts were looking for $3.22 per share in non-GAAP earnings and $77.3 billion in revenue. In the year-ago quarter, the iPhone maker reported $75.9 billion in revenue and $3.28 per share in earnings. Apple had guided for sales of $76 billion to $78 billion in the December quarter, which implied earnings of about $3.17 per share.

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Apple’s iPhone revenue jumps

The December quarter was the first full quarter of iPhone 7 sales. Apple said its iPhone revenue amounted to $54.4 billion, beating the consensus of $52.8 billion. Services revenue rose to $7.17 billion, compared to $7.01 billion a year ago and the consensus of $6.9 billion. The company sold 78.3 million iPhones, while analysts were expecting approximately 77 million iPhone units.

The company sold 13.1 million iPads, compared to the consensus of 15 million, for $5.5 billion in revenue and 5.4 million Macs for $7.2 million in sales. In the year-ago quarter, Apple sold 74.8 million iPhones, 16.1 million iPads and 5.3 million Macs.

iPhone 7 drives another record quarter

Verto Analytics said earlier today that it had identified that more than 600,000 people used the “Move to iOS” app to switch to new iOS devices just in the month of December, suggesting a sudden rush of new iOS users over the holidays. Tonight’s numbers show that this was the case.

Greater China again proved a problem for the iPhone maker, as sales fell to $16.2 billion., marking a 12% year over year decline. “Once Apple’s most promising geographical growth opportunity, the Chinese market has actually transitioned into its biggest geographical sales deficit, with -17% loss in fiscal 2016,” Thibault said in an email earlier today.

Apple issues March quarter guide

Analysts had also warned before tonight’s report that the company’s guidance might miss expectations, and it looks like they were right. The company guided for revenue of $51.5 billion to $53.5 billion and a gross margin of 38% to 39%. The consensus stands at $53.65 billion in sales and $2.09 per share for non-GAAP earnings in the March quarter.

Shares of Apple stock rose by as much as 2.54% to $124.43 in after-hours trades tonight.