Apple said that for its fiscal third quarter, it sold 40.4 million iPhones, compared with sales of 47.5 million in the same period a year ago. In last year’s June quarter, the iPhone maker posted adjusted earnings of $1.85 per share on $49.6 billion in revenue. The company sold nearly 10 million iPads and more than 4.2 million Macs, compared to nearly 11 million iPads and 4.8 million Macs past year.
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Apple CEO Tim Cook told The Wall Street Journal iPhone sales were better than they looked because Apple decreased channel inventory during the quarter.
Apple stock was up by 4.5% on the news.
“We had a June quarter that was better than we had expected 90 days ago”, Apple’s Chief Financial Officer Luca Maestri was quoted as saying by Bloomberg.
Tech giant Apple has released its third quarter results for 2016, with revenue falling for a second straight quarter, along with sales of the iPhone. The company shipped 40.4 million iPhone units for a total of $24.05 billion in revenue, representing a 15% year over decline in iPhone units and 23% year over year decline in iPhone revenue.
Since growth is what Wall Street likes to see, Apple executives are increasingly touting the purchasing power of the company’s massive customer base – almost 600 million owners of Apple devices who spend an average of $68 a year on apps, music and other services, according to estimates by Credit Suisse.
Revenue declined by 14 per cent year-on-year and 16 per cent on the previous quarter. Net profit for Q3 FY16 finished at $7.8 billion, down from $10.7 billion in Q3 FY15. Apple knew that the iPhone 6s and iPhone 6s Plus wouldn’t be enough this year, and so it introduced the iPhone SE at the end of March.
Apple’s update focuses on services revenue, growing at 19% as App Store revenue hits an “all-time record”. On the bright side, it was slightly higher than the $42.1 billion revenue figure expected by analysts polled by Bloomberg.
Shares of Apple are trading up about 5 percent at $101 after hours. Apple’s reported sales of “other products”, the category which includes the Apple Watch as well as Apple TV and Beats headphones, was $2.2 billion, down from $2.6 billion a year ago.
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Elsewhere, the iPad Pro sent overall iPad revenues upward for the first time in several quarters, although overall iPad unit sales continued to drop.
