Apple Profit Tops Analyst's Estimates

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July 23 (Bloomberg) -- Apple reported third-quarter profit and sales that beat analysts’ estimates, spurring optimism that the company is weathering an attack from low-end smartphone competition. BGC Partners' Colin Gillis and Bloomberg's Cory Johnson speak with Trish Regan on Bloomberg Television's "Street Smart." (Source: Bloomberg)

We are just getting the numbers as they are crossing, but you are right, there is a 35th -- $35 billion number in revenues.

That shows flat year over year growth, not flat growth as in no growth, with no shrinkage, they continue to have the biggest third quarter the company has ever reported, but earnings for share were down 20% year-over- year, they're making less money with the same amount of revenue, that is not an ideal situation.

And it has not turned around with last year's announcement of great products.

In fact they are guiding the margins next quarter between 36% and 37%. the margins for this quarter, they are diving for a slightly higher than that, let's call it midpoint.

Also saying that fourth quarter there will be a new product release, as expected, but they have said that before.

I am going to keep digging through this, but i've had sales, a like number there.

14.6 million instead of the 17.4 that might have been predicted.

Ipad sales, that might have been the case, week this quarter.

Colin is willing to overlook that?

You were impressed, really impressed.

Alive and well, it is a great number, nice to see you apple continuing to have that great momentum.

You were surprised.

Let's a consensus of 26 million?

I was looking for 28.5. 31 million?

That gets back to build apple for blowing out a number.

Unfortunately, right, you had some tablet stopper, but the smartphone market is much bigger.

As you pointed out, you think there is a new iphone in the works and it looks like the company is saying the same thing.

There will be one more in the stock as you head into the products refresh cycle.

It is announced and always -- there could be some new product announcements this fall.

What do you think they could be?

We get a new iphone every single year.

[laughter] would be the features of the new iphone in september, potentially?

Last year, september 12 is when they unveiled the iphone5 with pre orders on the 21st, rolling it out to the u.s. and other countries, the bulk of the rollout during the holidays.

You can get fingerprint authentication.

You could get a brighter screen, new technology there.

Ios7 as an improved version of siri.

And people really want to use the camera on their phone with better results.

Ios7 is going to make its focus pictures.

I am looking at the press release right here, between 34,000,000,037 billion, operating expenses between 3.9 and 3.9 5 billion, how does that strike you?

On the gross margin side it is nice to see them maintain what they got this quarter.

All of those fears about cannibalization and model according have not materialized.

The revenue is a little light, but that is what they expected no new products.

People stop buying.

737 as opposed to 730. listen, once you get close to launching the iphone, people stop buying the old models.

A little better than expected.

Correct.

Colin lee likes the iphone sales.

The reason is the growth rates we are talking about here.

Growth rates by perspective, right?

From 58 to 29 to seven.

This should have been a seasonally weak quarter, so acceleration in growth, i am surprised it is not as big a deal anymore, but the mac number, i would have expected it to be better.

It tells you how bad the pc business is, they can sell fewer computers in gain shares because they are not shrinking as much as the other guy.

Lee iphone, $600, they got some of this with price.

The iphone pricing, down 2581, a substantial drop in sales, sequentially, in the price of the iphone.

It may be one of the reasons they were able to help.

The subsidization of the iphone by at&t and verizon, a chance that that would change by any point?

Which would mean that the number that corey just mentioned for the iphone goes lower.

Bear in mind that if you want to think about how much room there is for prices to go lower, you can purchase a nokia 520 on at&t for $99. on the one hand that is $100 on the other end.

Apple is a strong brand and they have a premium product.

Apple is guiding the street so that they can float away every quarter.

People said -- that is not with the going to happen that time around.

It looks like it may have.

It was within the company.

The concern about the street over of setting ourselves with apple policy guysit looks from their pain center years.

Who is tim cook?

The franchise is great but we have to make sure that it continues under his stewardship.

All eyes of fall.

-- on the fall.

It is not over yet.

We are talking about iphones and ipad as opposed to it is two years ago.

Still not talking about new products.

How does that strike you?

They focus on the customer.

They are not trying to sell products the wall street or stock to wall street.

They are trying to sell products and have wall street respond.

We have celebrated year-over- year growth that does not break out the ipad major over the ipad many, but the unit's sales are up 29% year-over-year.

The wake of the ipad mini is

This text has been automatically generated. It may not be 100% accurate.

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