Still, with iPhone sales at 47.5 million during the quarter, up 35 percent from the same period a year earlier, and profit surging 38 percent, Cook said he was thrilled with the quarterly results.
Toni Sacconaghi, a financial analyst for Sanford C. Bernstein also told The New York Times that Apple’s growth is “mind-boggling”, but that “everyone expected that and a little bit more”.
On the heels of a good-but-not-great earnings report as well as concerns about demand in China and iPhone growth prospects, investors are sending Apple stock sharply down in Wednesday morning trading on Wall Street. Colin Gillis, an analyst for BGC Partners, said the results highlighted the vulnerability of Apple’s dependence on the iPhone and the Chinese market’s growing importance to the company.
Apple attributed the strong showing to record-breaking sales of iPhones and Macs, along with strong revenue from services and the successful launch of Apple Watch. New data released today show that is the time it took for Apple to decimate Samsung’s domination of the smartwatch market.
Cook said more Apple Watches were sold in June than in May or April.
Top execs at Apple have repeatedly said the company is holding off on providing clear Apple Watch sales figures for fear of tipping off the competition. But the analysts who studied the break-up carefully, especially the “other product” section, determined that the much-hyped device might have got a lukewarm response from buyers in its first quarter in the market.
Apple has sold Apple Watches in the range of a billion Dollars so far.
Apple reported net profit of $10.7 billion in its third quarter, up from $7.7 billion previous year. Apple was nice enough to confirm that the Watch made up the difference in revenue and then some as iPod sales fell again. CFO Luca Maestri added that over $13 billion was returned to investors through the company’s capital returns program.
According to Apple’s latest earnings report, the company brought in $2.6 billion in revenue from “other products”, which includes the Apple Watch, but not products such as iPhones, iPads, and Macs.
Apple has sold more smartwatches since the launch of the Apple Watch 90 days ago than Samsung, Pebble, Sony, LG, Motorola and all the other players combined sold in the 365 days of 2014.