Apple makes $10.7b in one quarter

Apple shares slumped almost 7 per cent in after-hours trading as its fourth-quarter revenue forecast fell short of estimates and it missed some targets for iPhone sales.

The strong iPhone results were broad-based in both developed and emerging markets and we experienced the highest switcher rate from Android that we’ve ever measured.

This means more people are switching from Android to the iPhone than they were in the past.

iPhone and its operating system are an existential threat to Android, in other words.

This is good news for Apple and not simply because more people are purchasing iPhones. Apple’s iPhone sales numbers for the June quarter did little to calm that concern, since it sold fewer units than analysts had expected.

Some analysts are anxious that there isn’t any room left for the iPhone to grow since the iPhone 6 has done so well. For years, one of the biggest differentiating factors Android handsets had over the iPhone was a bigger screen. He observed that the organization had the highest rate of switchers from Android phones ever in this quarter. Cook referred to the different strategies Apple uses to increase the iPhone’s market share.

Despite the continued growth of the iPhone, and the fact that it’s clearly starting to appeal more and more to Android fans, the company’s stock took a tumble immediately after the earnings were reported.

Apple didn’t break out numbers for the watch. Cook seemed genuinely pleased with the data point, making a point of mentioning it two other times during the call.