Apple late on Tuesday reported better than expected iPhone shipments during its fiscal third quarter, but volumes were still noticeably lower compared to a year ago. But iPad revenue was actually up for the first time in ten consecutive quarters, however, due to the introduction of the more expensive iPad Pro range, which pushed the segment’s revenue up seven per cent. “We’re looking forward to opening retail stores in India down the road and we see huge potential for that vibrant country”, The Wall Street Journal reported, citing Cook.
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He said artificial intelligence and augmented reality will only reinforce the importance of the iPhone, adding that Apple is working to make sure its products work well with third-party products, such as Pokemon Go.
For the fourth quarter, the iPhone maker is expecting a revenue of about $45.50 billion to $47.50 billion.
Sources had said Apple may have to submit a fresh application for the same. It pulled in $6 billion in revenue for the June quarter and now makes up 11 per cent of the company’s total revenues, with Cook predicting that it will be “the size of a Fortune 100 company next year”.
An Apple store is located in Shanghai.
That’s a problem because last year’s “tock” release, the iPhone 6S, is what triggered the sales shortfall we’ve seen this year: The devices were just too evolutionary to garner much excitement.
Indeed, the smartwatch isn’t exactly flying off the shelves, according to analyst firm IDC, which said earlier this week that Apple shifted 1.6 million units in the three months ending in June, down 55 per cent compared with 3.5 million in the same quarter in 2015. Global sales accounted for 63% of the quarter’s revenue.
Chief executive Tim Cook said the results showed “stronger customer demand and business performance than we anticipated at the start of the quarter”. Despite a fall in sales by over two million units, Apple still commands 47% of the smartphone market, down from 72% in Q2 of a year ago.
The company sold 40.4 million of the devices in the period, down 15% from the same quarter a year ago but still more than a market consensus of 40.02 million. In the preceding quarter, revenues from iPad sales stood at $4.4 million.
Apple sold 4.2 million Mac units in this quarter, generating revenues of $5.2 million.
Apple’s quarterly reports also showed that sales of iPhones, iPads and Macs were all down year-on-year, although sales of its smartphones are likely to increase later this year, with a new model expected in September.
Net income for the quarter was down 27% to $7.8bn as iPhone sales fell for the second quarter in a row, down 21% on the last quarter and 15% on the same quarter a year ago, resulting in a 23% drop in revenue.
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Nonetheless, shares, which have fallen nearly 20% over the past year, rose over 7% in after-hours trading because the firm’s overall performance was not as bad as analysts had expected.
