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Apple profit jumps 38% to $10.7bn on surging iPhone sales
Posted On Aug 01 2015
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Tag: Apple, Apple Watch, billion, company, demand, iPhone, percent, revenue, Sales, smartwatch, Strategy Analytics, watch
Analysts have been closely scrutinizing the “other products” category, where Apple has lumped sales of the timepiece in with products such as the iPod, Apple TV and Beats accessories.
“Sales of the watch did exceed our own forecasts”, Cook told analysts on a conference call, adding that demand outpaced supply in the early weeks. Samsung was nowhere close to Apple, and managed to rake in only 7.5 percent of global smartwatch market share, with less than even half a million units shipped in the second quarter.
Global smartwatch shipments grew 457 percent annually to hit a record five million units in the second quarter of 2015, Strategy Analytics says, with Apple responsible for the vast majority of that growth.
The company told investors in March it wouldn’t be breaking out Watch numbers on earnings reports to keep competitors in the dark about the overall market.
As 9to5Mac notes, Apple said it made $2.6 billion in its “other” category during the quarter, up from $1.7 billion during the fiscal second quarter.
The Apple Watch may be one of the most expensive smartwatches on the market, but it’s also probably one of the most profitable.
However Chief Financial Officer Luca Maestri told The Associated Press that revenue from the watch amounted to “well over” that $952 million increase.
An Analyst Katy Huberty at Morgan Stanley said that in the June quarter, iPhone revenue growth accelerated and iPhone units missed the expectations.
The other manufacturers such as Sony and Pebble, who were also first to offer before Apple, carved out a combined 17 percent share of the market.
Revenue for the company alone was $50 billion which was mostly attributed to sales of the iPhone.
Apple already has a 75 percent share of the smartwatch market, despite the Apple Watch being on sale for only three months, according to data from Strategy Analytics.
Technology giant Apple Inc. lost more than $60 billion in market value in just three minutes on Tuesday. “The ball is now in the court of rivals, like Samsung, to respond”, he said. This was reiterated by Cliff Raskind, Strategy Analytics’ director when he said, “It was the smartwatch industry’s fastest ever growth rate”.
