Apple Watch leading the smartwatch market with 75%

Tim Cook-led Apple Inc, the maker of the iconic iPhones among other devices, posted a $10.7-billion net profit on revenue of $49 billion for the April-June quarter. Growth was attributed to strong iPhone, Mac and Apple Watch sales (international sales accounted for 64% of the quarter’s total) and an all time record revenue from services. As expected, Apple did not release a breakdown of how many watches it sold.

Apple shares were down 4.65% to $124.66 at 1559 BST on Wednesday.

The reduction will not involve any changes to product plans, an Apple spokeswoman told the Wall Street Journal. A survey of analysts by Fortune resulted in sales estimates ranging from as low as 2.85 million units to as high as 5.7 million units sold, for an average of 4.07 million.

Cook brushed aside any worry about iPhone sales growth, expressing confidence it has “lots of legs” that it will be running with for many years to come given market factors such customer satisfaction rates and the booming overall global smartphone market.

The Strategy Analytics data shows that 4.6 million smartwatches from all vendors were shipped in the entire year last year.

So now that the Apple Watch has been released, we’re sure many are curious as to how well the device is doing.

In a note to investors, the broker cited potential new areas of innovation, such as streaming TV, and a rapidly expanding digital business as the reasons why Apple’s future had “never been brighter”. Without disclosing specific figures, Maestri said sales of the Apple Watch beat the company’s expectations.

Apple said it is looking to momentum in the enterprise market, including a partnership with IBM, and features in the company’s forthcoming iOS9 operating system to improve iPad sales.

Apple reported $2.6 billion in revenue from other products, up 49 percent from a year ago, when the watch was not yet on sale. The company’s regulatory filing for the fiscal third quarter has revealed that it has made an 8 percent cut – amounting to $1 billion – in its capital-spending forecast. Cowen and Company suggested sales of 3 million Apple Watches. “Obviously the revenue could have been much higher if we would have expanded the channel”.

On Tuesday, Apple released the earnings report for its June quarter and the company has surpassed expectations.