Strong iPhone sales; Apple stock down with few Watch details

Revenue rose 32.5 percent to $49.61 billion from a year earlier, beating Wall Street’s expectations of $49.43 billion. Analysts estimated that the company sold around 48 million to 50 million iPhones during the period.

On a geographic basis, Apple more than doubled its revenues year-on-year in China, to United States dollars 13.2 billion.

He said watch sales were offset by the declining revenue from iPods and accessories, which also fall under that segment.

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. Previous year in this quarter Apple reported $6.2 billion in revenue, this quarter they report $13.2 billion.

IPad sales continued to suffer, with tablet shipments falling 18 per cent to 10.9 million, marking the sixth straight quarter of declines and matching analysts’ average estimate.

That aligns with what CEO Tim Cook said on the earnings call: That the Watch had outperformed other groundbreaking products, like the iPhone and iPad.

Overall revenue increased 33 percent from a year earlier, and China revenue represented 27 percent of Apple’s total, down a bit from the prior quarter. Sales of iPads contributed $4.5 billion in revenue.

APPLE sold 4.8 million Macs, up 9% from a year ago. Financial analysts polled by Thomson Reuters expected sales of $49.4 billion.

Apple said it made a net profit of $10.7 billion in the three months to June, up from $7.7 billion in the same three months of 2014. Still, Apple isn’t talking about the one thing we all really want to know: how the Apple Watch is selling.

Even though Cook said he’s satisfied with the Watch’s sales performance so far, he said his focus is on gearing up for the holiday season, during which he anticipates the Watch will be a top-seller.

In the prior quarters, Apple boasted its own personal record for most units sold in a quarter. But it also contains hints that Apple’s much-vaunted smartwatch may not be selling as fast as Wall Street expected.

Apple’s iTunes and new Music service were restored Tuesday after a service failure that lasted nearly four hours.