However, the iPhone 6 and 6 Plus have proven extraordinarily resilient this year, as Apple’s upgrade to a 4.7-inch and 5.5-inch model has helped it against Android competitors.
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Apple shares slid ahead of the earnings report, trading 1 per cent down at 130.76 at the bell.
Chief Financial Officer Luca Maestri told The Associated Press that revenue from the watch amounted to “well over” that $952 million increase.
A survey by Nielsen and SBD of more than 14,000 iPhone users found more than half say they would consider buying an Apple vehicle.
Piper Jaffray offered a similar assessment of Apple Watch sales – estimating a slow start, with approximately three million of the devices sold in its first three months. All we have are anecdotes and not-quite-reliable evidence that watch sales have plummeted in the weeks after launch. Apple shares trade near $130, up 37% in the past year.
And in a sign of what else is to come, Apple is ordering record numbers of its next iPhone models, the Wall Street Journal reported earlier this month.
For the current quarter, the company sees revenue in a range of $49 billion to $51 billion, below consensus of $50.92 billion.
Sales in Greater China more than doubled from the prior-year period to $13.23 billion, though down from $16.82 billion in Q2.
It’s easy to find dozens of reasons to not pile into the crowded Apple (AAPL) trade.
Analysts be expecting a further powerhouse effectiveness from the California tech giant when it studies quarterly fiscal effects Tuesday.
But Munster said he believes that demand for the Apple Watch will take time and is confident that 2017 will be the device’s “breakout year”. The iPhone has remained popular in a market where other smartphone makers are experiencing significant slowdowns. On the other hand, the demand for the Apple Watch isn’t clear enough.
But Apple will also give its first report on Apple Watch sales, after its new gadget launched this past April in nine countries.
“We know that, for us to be successful, we need to innovate all the time”, he added.
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“I think that this failing is the single biggest reason why the device is underperforming and why wearables in general continue to massively underperform the hype”. That wont stop the number crunchers from trying to figure out the impact of the Apple Watch on the bottom line. During the third quarter, Apple sold 47.5 million iPhones, 4.8 million Macs, and 10.9 million iPads.
