? ok, we have breaking news for you.
Apple earnings crossing right now, the number looks good.
We want to go to jon erlichman, our senior west coast correspondent, and colin phillips is also here.
John, 826 versus estimates of seven hundred 92, really blowing away the estimates.
A big bottom line.
The $37.5 billion in revenue for this quarter head of what wall street was looking for.
Big revenue beat, looking at portions of the apple business, they have always been good at giving us the breakdown of how many were sold.
We just talked about the estimate based on the analysts that were pulled.
Perhaps those early sales were encouraging and helping to fuel that number.
The 14.1 million ipads sold during this.
Are similar to what wall street was looking for, although i have to say that that is a bit lower than what wall street was looking for.
They just unveiled two new ipads hoping to boost those sales in the holiday.
. the company also talked about the fact that looking ahead, the revenue for its first quarter, the holiday quarter, could be between $55 billion and 58 ilion dollars, looking pretty healthy compared to what wall street was looking for.
That is always the big monster quarter for them.
I had seen an estimate like that in the first quarter of revenue, i expect that that will give people encouraged in the gross margin.
The estimates on wall street were for something a bit higher, perhaps because of the fact that they are spending a lot for new products.
They say that the first quarter of the holiday.
Will between $4.5 million overall.
If you look at that, these are well received results.
Colin, how are you receiving them?
You were concerned about guidance, they were coming in basically there, but maybe a little bit ahead.
This is the sweet spot of the year for apple.
You will have to be very pleased if you are an apple investor with these.
While iphone and mac sales were better than expected, ipad, the big margin item, a little bit low.
When they rolled it out, they gave us 170 million total sold this month.
We knew it was less than 15 million.
We knew that there would be no upside for that product in this quarter because it just got refreshed.
14 millions ahead of a refresh is still pretty good and now we are entering into the strong holiday quarter.
The nice part is they came in above the top end of their guidance, actually landing closer to their guidance, which will just reduce the volatility.
The blowups that we use to get in the past are not occurring.
The company is instead trying to be accurate.
Then why is the stock trading down right now?
This is a nice beat.
The december quarter guidance is also strong and healthy.
Things are starting to dwindle.
We have refreshed product line.
You sold 34 million iphones in the quarter, so there is one big catalyst left that i see, china mobile, taking on and selling the iphone entering into the holiday season.
What about the reduction in growth margin?
We are looking at them in the fourth quarter gross margin is over estimates of 37.74%. does that slight reduction mean something?
Among investors there are some thoughts that apple could experience a surge in growth margin cycles similar to the iphone 4 to the 4s, they are able to really drive results.
To put it in perspective, the guidance they gave was better than it was before.
You saw what is happening with pricing.
For six quarters in a row the prices have come down.
That is the nature of the beast, right?
This is a change story.
That is why it was trading at nine times.
Has it gone from being a growth story to a value story?
Is that why you like it?
There is still some room to run in my book.
In our preview we talked about dwindling catalysts, right?
But this is a fantastic result for the quarter and strong guidance, so if you are not happy with this -- you have margin compression going on, a lot of sort of rumors on the news, to your point this is a company that needs new catalyst and product to get people excited.
What is in the pipeline that might get someone excited?
Apple likes to keep that pretty close, but the expectations are that this company could introduce a watch.
Could introduce a television.
Like everybody trying to make sure that if they went down that path.
But we have been hearing about this forever.
Why have they not introduced it?
That is the concern that the tim cook era has not led to any gangbuster products, that it has just been iterations.
One and a half years of no new products.
In fact if we enter into the first half of the calendar year with this gigantic product vacuum, if we do not get a new product category in that time, like everyone thought would happen this year, it would be a repeat.
Are investors being too demanding?
Tim cook, refreshers, are we looking for too much?
What are you going to do?
Put jet packs on the smartphone?
For them to roll it out right now, they want a product it is able to do that and that does take time.
Help viewers understand.
You like this company because they are generating a lot of cash, is cheap, and you may have luck with new products in the future?
And then there is china mobile.
One of the largest carriers out there.
That could help to continue to drive sales.
Might that help to reverse the contractions we have seen for a few quarters in a row?
We will leave it there.
Thanks for helping us to decipher the news.
Thank you for having me.
Coming up, sex, politics, paychecks, the secret formula behind a new show on fusion, a network aimed at millennial's. we will get the inside scoop from anchor alicia menendez.
Later, proof that bacon really does make everything better.
You will not believe what they are doing with bacon now.
Technology meets the world's most perfect food.
This text has been automatically generated. It may not be 100% accurate.