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Apple reports best June quarter ever driven by services, wearables growth

Apple results: No major mention of India except for double digit growth in Macs

Written by Nandagopal Rajan | New Delhi |
Updated: August 1, 2018 7:35:08 am
Apple results, apple profit, apple growth, tim cook, apple india Apple’s numbers also show that it’s dependence on the US market as well as the on iPhone lineup is coming down.

Apple has exceeded market expectations. In its financial results for the third quarter of 2018, the company posted a revenue of $53.3 billion, which is a 17 per cent increase on the same quarter last year. The strong performance means Apple could soon become the first company with a market cap of $1 trillion.

Apple’s numbers also show that it’s dependence on the US market as well as the on iPhone lineup is coming down. Wile international sales accounted for 60 per cent of the quarter’s revenue, its services and wearables business also showed considerable uptick.

Apple CEO Tim Cook said it was the company’s “best June quarter ever” and also the fourth consecutive quarter of double-digit revenue growth. “Our Q3 results were driven by continued strong sales of iPhone, Services and Wearables, and we are very excited about the products and services in our pipeline,” he said. Bloomberg reported that one reason for the high revenue is that Apple has been able to keep the average selling price of the iPhone above $700 for the third quarter running.

Also read: Huawei is now world’s second largest smartphone vendor ahead of Apple

In the earnings call, Cook said the growth of the iPhone across many markets has been higher than that of the smartphone industry itself. He said the company has had a “stellar quarter in services” with an all-time high revenue of $9.5 billion which he attributed partly to the double-digit growth in active installed base. He said Apple was on target to reach its goal of doubling fiscal 2016 services revenue by 2020. Cook said revenues from paid subscriptions of Apple and third parties had shown a 60 per cent year on year growth and was now over $300 million. With over 30,000 apps with paid offerings on the store, he expected this number to only grow.

Apple’s wearables business, which consists the Apple Watch, AirPods and Beats, was up over 60 per cent year-over-year and has exceeded $10 billion in revenue over the last four quarters. Cook said the Apple Watch delivered record June quarter performance with growth in the mid 40 per cent range and he compared the popularity of the AirPods to that of the early days of the iPod.

Read more: Apple’s Tim Cook calls tariffs a ‘tax on the consumer’

“Our strong business performance drove revenue growth in each of our geographic segments, net income of $11.5 billion, and operating cash flow of $14.5 billion,” Luca Maestri, Apple’s CFO, said in a statement. Interestingly, there were no specific statements about the Indian market, where Apple has not had a great quarter as per local analysts, except for the comment in the earnings call that it was one of the markets were the Mac had shown double digit growth.

Apple’s expectation is that revenue will grow to between $60 billion and $62 billion in the last quarter of 2018.

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