China, really bad. iPhones are over hyped. Still, $1bn is $1bn
The iGiant said that for the three months to April 1, its second quarter of the 2017 fiscal year, it recorded:
- Revenues of $52.9bn, up five per cent from $50.6bn in Q2 2016.
- Net income of $11bn, up five per cent from $10.5bn in the year-ago quarter.
- Earnings per share of $2.10 topped analyst estimates of $2.02.
- The flagship iPhone sold 50.7 million units on the quarter, down one per cent, year on year. Sales of $33.25bn were up one per cent.
- The iPad continued its downward plummet, moving just 8.92 million tablets to drop 13 per cent, and $3.89bn in revenue, down 12 per cent from the year-ago quarter.
- The Mac was a bright spot for Apple, as its longest-tenured product sold 4.2 million units, up four per cent, and $5.84bn of revenue, up 14 per cent.
- Services (including the App Store and Apple Pay) accounted for $7.04bn on the quarter, an 18 per cent increase.
- Apple’s Other Products group, a category that includes the Apple Watch and Apple TV, boosted revenues by 31 per cent to $2.87bn year-over-year.
Despite shipments and revenues being virtually flat on the year, CEO Tim Cook talked up the success of what he called “continued robust demand” for the iPhone.
“We’ve seen great customer response to both models of the new iPhone 7 (Product)RED Special Edition and we’re thrilled with the strong momentum of our Services business, with our highest revenue ever for a 13-week quarter,” Cook said, blaming the flat sales instead on anticipation of the not-yet-real iPhone 8.
That’s right, Apple blames hype around its iPhones for its sales problems. The irony.
China once again proved to be a problem for Cook and Co. While Europe and the Americas reported double-digit growth (10 and 11 per cent, respectively), revenues in China for the quarter were down 14 per cent.
You can grab a transcript of Cook’s conference call with analysts earlier today, here. Apple shares were down 1.87 per cent in after-hours trading at $144.75. ®