Executive Summary

• Apple reported 2Q17 EPS of $2.10, up 10.4% year over year and beating the consensus estimate of $2.02. Revenues were $52.9 billion, up 4.6% year over year and slightly below the $53.1 billion consensus estimate.
• The company sold 50.8 million iPhones in the quarter, below the consensus estimate of 52.3 million units. iPad units sold decreased by 13% year over year and Mac units sold increased by 4%. Services revenue was $7.0 billion, up 18% year over year.
• Apple guided for 3Q17 revenues of $43.5–$45.5 billion, below the consensus estimate of $45.6 billion. The margin and expense ranges provided result in an EPS range of $1.42–$1.61, below the consensus estimate of $1.62.