Apple beats earnings estimates thanks to 61.2 million iPhones sold, higher sales in China
But sales of the iPad tank, falling 23 percent, failing to meet the prior year’s sales level for the fifth straight quarter
Apple earnings were another blow-out thanks to the company selling 61 million iPhones (if you’d just stop dropping your phone…). But iPad sales continue to tank, falling 23 percent in first three months of 2015 (which is Q2 of Apple’s fiscal 2015 year).
Apple revenue climbed 27 percent to $58 billion from $45.65 billion, as the company sold plenty of iPhones. Customers continue to upgrade their devices every two years, loyal to both the brand and the device, while new customers are being added on. (The short upgrade cycle, compared to that of the Mac or iPad, certainly is helping Apple maintain its crazy growth rate.)
Net income was $13.6 billion for the quarter. By way of comparison, Google reported last week that revenue grew 12 percent to $13.9 billion, while income was $3.59 billion. Facebook grew revenue 42 percent to $3.54 billion, with net income coming in at $512 million.
“We are thrilled by the continued strength of iPhone, Mac and the App Store, which drove our best March quarter results ever,” said Apple CEO Tim Cook. “We’re seeing a higher rate of people switching to iPhone than we’ve experienced in previous cycles, and we’re off to an exciting start to the June quarter with the launch of Apple Watch.”
But Apple’s miss with the iPad is starting to get the attention of the tech press. The 12.623 million units sold represents the 5th straight quarter that iPad sales failed to meet the year before. With the introduction of the new Macbook, it is quite possible that next quarter Apple will report that Mac sales, which grew to 4.563 million units this quarter, will once again mean more revenue for Apple than the iPad.
Mac sales recorded a modest increase of 2 percent revenue as prices fell (sold units were up 10 percent from a year ago.) Sales in the Services category, which includes the iTunes store, the App Stores and Mac Store, as well as Apple Pay, were rather modestly higher. While Other Products, which includes the iPod, Apple TV and Beats, fell 10 percent.
Apple also reached a bit of a milestone as sales to China reached $16.8 billion, growth of 71 percent over the same quarter of 2014. Sales in China were $4.4 billion more than sales in Europe – and when sales in Japan are added in, Apple revenue from Asia was almost equal to that of the Americas.
Next earnings report will be the first where Apple will report sales for the Apple Watch. Apple is also expected to introduce a new model of the Apple TV, though it is unlikely to effect revenue much going forward, and not at all in Q2.