iPhones Soared & iPads Slumped In Apple's Latest Earnings

Nine-month iPhone unit and dollar sales already exceed full-year 2014 metrics
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Cupertino, Calif. — Apple’s third-quarter sales grew 33 percent worldwide to $49.6 billion, with nine-month revenues up 29.5 percent to $182.2 billion.

Net income rose 37.8 percent to $10.7 billion for the quarter and rose 26.2 percent for the nine months to $42.3 billion. The quarter ended June 27.

Revenue and net-income growth in the quarter accelerated from the first half to mark the company’s fastest growth rates in more than three years, CEO Tim Cook said, who attributed the gains to record third-quarter sales of iPhones and Macs, all-time record revenues from services, and the Apple Watch, whose sales weren’t disclosed.

Services include iTunes, AppleCare, ApplePay, licensing and other services.

Gross margin rose to 39.7 percent from 39.4 percent.

Sales growth was driven in large part by the greater China area, where sales grew 112 percent to $13.2 billion. Sales in the Americas, in contrast, were up 15 percent to $20.2 billion, and Europe sales were up 19 percent to $10.3 billion.

Revenues were up sharply despite the negative effects of currency fluctuations, the company noted.

Here’s the sales breakout by product:

iPhone sales: Global iPhone revenues rose 59 percent to $31.4 billion on a unit-sales gain of 35 percent to 47.5 million.

Nine-month units and dollars came to 183.2 million and $122.9 billion, respectively, exceeding fiscal full-year 2014 units and dollars.

In fiscal 2014, iPhone unit sales grew 12.6 percent to 169.2 million, and dollar sales were up 11.8 percent to $102 billion. Those growth rates were down from fiscal 2013’s unit gain of 20 percent and dollar gain of 16 percent, and 2013’s growth was down from fiscal 2012’s 73 percent unit gain and 71 percent dollar gain.

The quarter’s iPhone ASPs grew by $99 to $660, the company said.

Apple Watch: Though Cook declined to disclose sales for competitive reasons, he said sales exceeded expectations despite initial supply constraints, with only 680 points of sale, and with a lack of inventory in Apple stores until mid June. Initial sales exceeded initial sales of the original iPhone and iPad, he claimed.

iPad sales: iPad revenues fell 23 percent to $4.54 billion on a unit-sales decline of 18 percent to 10.9 million. Sales fell for the sixth consecutive quarter in units and dollars.

Despite the drop, Cook said he is still “bullish” because of new iPad capabilities available with the planned iOS 9 launch, a pickup in enterprise demand, and his belief that “the iPad consumer-upgrade cycle will eventually occur.”

Macs: Revenues rose 9 percent to $6 billion on a unit-sales gain of 9 percent to 4.8 million even as the overall computer market shrank.

Other products: Sales rose 49 percent to $2.64 billion, including the iPod, Apple TV, Beats Electronics, and Apple- and third-party-branded accessories.

Services: Revenues from iTunes, AppleCare, ApplePay, licensing and other services rose 12 percent to $5 billion

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