Apple made even more money last quarter, but Wall Street doesn’t care
Apple has posted yet another record quarter of profits, driven by huge demand for the iPhone. Revenue for its third quarter (ending 27 June) was $49.6 billion, up 33% year on year, while profits were $10.7 billion (up 38%).
The company sold a massive 47.5 million iPhones in the quarter, up 35% on the same quarter last year. The growth was largely driven by sales in China, where overall revenue grew by 112% year on year. iPhone unit sales in China were up 87%.
The Mac, too, saw significant growth, with over 4.8 million sold – up 8% year on year. This bucks the trend of the overall PC market, which, according to analysts Gartner, is growing at around 1%.
However, not everything was rosy for Apple. The iPad continued its slide in sales, with 10.9 million sold in the quarter. This was a 19% decline year on year, and a four-year low.
The biggest unknown factor, though, is the Apple Watch. In line with previous statements, Apple CEO Tim Cook declined to give detailed sales figures for the Watch. However, in an interview with The New York Times, Apple CFO Luca Maestri said “sales in its first nine weeks exceeded those of the iPhone and iPad in their first nine weeks of availability”. As the company has previously stated that the iPad sold three million units in its first 11 weeks, this means the product is likely to have sold at least 2.5 million units – easily more than any other smartwatch.
None of this was enough to satisfy Wall Street, however, which continues to have doubts over whether Apple can continue its incredible growth in the future. Shares in the company fell by 7% in after-hours trading.