Apple shares tank on earnings report

The closest clue to actual Watch sales is through Apple’s “Other Products” category, which includes the Apple Watch as well as Apple TV, iPods, Beats headphones and accessories.

Not only have iPhone revenues increased significantly but the company has also seen impressive growth in other products and key markets, netting Apple an impressive $49.6 billion in revenue and nearly $11 billion in profits this quarter.

Another area that could portend badly for future quarters for the company is the question of sales of Apple Watch. The firm said that Apple sold four million watches in the second quarter, slightly less than the 4.2 million figure pegged by Canalys, giving the firm 75 percent of the global smartwatch market. Of course the surge in sales might also be due to the rise in popularity of smartwatches and wearable tech and as a global trend, but majority of these numbers can be accredited to Apple’s Apple Watch. That has led some analysts to conclude that the Watch has done around $1 billion in sales.

However Chief Financial Officer Luca Maestri told The Associated Press that revenue from the watch amounted to “well over” that $952 million increase.

Apple sold 10.9 million iPads in the last quarter, down 18 percent from a year earlier.

The growth in Mac sales was driven by new versions of the company’s MacBook laptops, according to CEO Tim Cook, although he did not provide details on desktop sales. Samsung was a distant No. 2 with 400,000 smartwatches shipped in Q2, giving it 7.5% market share, he said. “Apple’s own forward-looking revenue projections, too, came in below Wall Street expectations – hence the bad vibes after Tuesday’s earnings report”.

With a pretty generous three month free trial, we likely won’t hear much about Apple Music’s profit until another quarter and a half, I believe. (NASDAQ:AAPL) is still in the middle of transformational, super cycle with the Apple Watch, its new product category in five years. “The ball is now in the court of rivals, like Samsung, to respond”, wrote Neil Mawston, Executive Director at Strategy Analytics.