Apple Q3 Revenue Up 33%, Profits Up 38%
July 21, 2015 at 3:35 PM (PT)
APPLE reported Q3 revenue rising 33% and profits rising 38%, the NEW YORK TIMES reports. Q3 Net income rose from $7.7 in 2014 to $10.7 billion. Revenue rose from $49.3 billion to $49.6 billion, slightly above the expectations of WALL STREET analysts. Apparently, slightly above expectations isn't good enough for many on WALL STREET, as APPLE's after-hours stock price dropped 6% to $130.75.
“We had an amazing quarter, with iPHONE revenue up 59% over last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for APPLE WATCH,” APPLE CEO TIM COOK said in a statement, adding that excitement for its new APPLE MUSIC streaming service was “incredible.”
APPLE sold 47.5 million iPHONES during the quarter, up 35% from a year ago. This goes against the historical grain, as device sales usually go down in the spring before rising from SEPTEMBER to DECEMBER, when consumers stock up on new devices for the back-to-school and holiday shopping seasons.
Other news of note:
* “Other Products" generated $2.6 billion in revenue. The category includes products like the iPOD and the APPLE WATCH. However, APPLE did not break out specific sales data for the smartwatch. In an interview, APPLE CFO LUCA MAESTRI said the watch’s sales in its first nine weeks exceeded those of the iPHONE and iPad in their first nine weeks of availability.
* International sales accounted for 64% of Q3's overall revenue. Sales in the greater CHINA region more than doubled in the quarter to $13.2 billion.
* APPLE sold 4.8 million Macs, up 9% from a year ago.
* Sales of the iPAD, continued to decline. The company posted sales of 10.9 million iPADS, down 18% from the 13.3 million sold in the Q3 2014.