Apple Reports 38 Percent Increase in Profit

Apple beat Wall Street expectations on revenue and earnings per share.

Cook also said that noting that iPhone revenue in the quarter that ended on June 27, sales went up by 59% from the same period a year earlier.

Emerging markets overall grew 79 percent to nearly $18 billion and represented 35 percent of its total company revenue.

The tech giant didn’t reveal any details about how many Apple Watches it has sold to date, but said it’s had a great start, with CFO Luca Maestri claiming that Apple Watch has accounted for more than 100% of growth in the “Other Products” category. “We’re up over 85 percent in Greater China and in India, and increased more than 45 percent in several countries including Italy, Spain, the Netherlands and Turkey”, said Cook.

After two blockbuster quarters in a row – Apple sold a record-breaking 74.5 million iPhones in Q1 2015 and 61 million iPhones in Q2 – Apple has completed what is traditionally its slowest quarter selling 47.5 million units of the iPhone. That’s up from $1.68 billion last quarter and $1.76 billion during the same time period previous year. In the same quarter a year ago, Apple reported earnings of $1.23 per share on revenues of $37.4 billion.

Following the release of the report, shares dived almost nine per cent, wiping around $84 billion ($US62 billion) from it’s market value in just a few minutes, the Financial Review reports. As The Verge points out, Apple once told us it sold 3 million iPods in the first 11 weeks it was available. Cook said the company has learned from the layout of Watch retail sales and largely improved its supply issues.

That’s drastically less than the $US1.8 billion in watch sales that analysts surveyed by FactSet were expecting. Apple is working on a new larger-screened version of the iPad that could appeal to corporate customers looking to use the device as a replacement for a laptop computer, people familiar with the plans have said.

This was one of the key numbers analysts had been watching today, especially since the iPhone has been delivering record breaking sales and profits in recent quarters.

Besides the Apple Watch, Apple has released new models of other devices and launched its Apple Pay electronic payments service last fall and a streaming music service this month.