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It's Wednesday August 2nd welcome to market foolery. I'm Chris Hillining me in studio today for Motley Pool Funds, Bill Barker. Happy Wednesday.

Thank you. We've got earnings. Holy cow do we have earnings. We've got, we're going to talk snack foods. We're going to talk the movie

business which based on what's happening with movie theater stocks today appears

to be in a little bit of trouble. But we're going to start with the biggest fruit company out there,

and that is Apple.

Third quarter revenue comes in north of $45 billion.

And as impressive as that is, their gross profit margin, 38.5%.

Was there a number that stood out to you with this quarter?

Because for me, the gross profit margin continuing to just tick up

just a little bit is maybe the most impressive thing about Apple.

Well that's a function in part of the services, which are higher margin and those

being a bigger chunk and growing faster than the rest of the company. In fact, growth is

hard to

hard to anchor on with Apple because you know with the cycle of new iPhones

coming out it is not 10% more sales every year over year kind of growth.

Sometimes one of the iPhones hits and then there are millions more units than the year before and then you're off cycle and it's much less.

Second quarter is always the weakest for Apple so in terms of bottom line profitability

this is sort of the least important quarter.

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