Apple Beats Expectations With $58 Billion In revenue, Sells 61 Million iPhones

The iPhone 6 is the drive that continues to power stellar quarters for Apple. This afternoon isn’t any exception. the company stated Q2 revenues of $58.01 billion and quarterly profit of $13.6 billion.

monetary analysts had projected revenue of $fifty six.1 billion. A 12 months in the past revenues had been $forty five.6 billion.

Apple bought 61.2 million iPhones last quarter when compared with expected gross sales of fifty eight million. Apple has now offered over 134 million iPhones in 2015. once again, however, the company offered fewer iPads than anticipated (12.sixty two million vs 13.6 million). It also sold slightly fewer Macs (4.fifty six million) than anticipated — although gross sales still outpaced the broader industry.

Unit gross sales for Q2:

• iPhones: 61.2 million gadgets, $forty.3 billion in revenue
• iPad: 12.6 million gadgets, $5.4 billion in revenue
• Macs: four.56 million devices, $5.6 billion in earnings
• services: $4.99 billion in earnings (quarterly document)
• different: $1.7 billion in revenue

Non-North American gross sales were chargeable for roughly sixty three % of income, $16.8 billion of which got here from China. That was once 2d handiest to the Americas area, which generated $21.3 billion.

Apple has $194 billion in cash on hand. the corporate projected Q3 earnings between $46 billion and $48 billion. Its inventory is at present up in after-hours trading.

selected notes and comments from the earnings name:

CEO Tim cook dinner: number of places accepting Apple Pay has tripled. best buy is the newest retailer to adopt. you could now use Apple in numerous hospitals.

Apple is now liable for $600K jobs in Europe. New European knowledge centers will run 100 percent renewable power. And most of the firm’s operations are run off renewable power.

“We’re happy with consumer response to the new MacBook” (critiques were blended). Touts HBO Now on Apple tv. one of the crucial prime apps in the us.

Apple Watch: the public’s response has been overwhelmingly positive. There are three,500 apps already on hand (not fb however).

CFO Luca Maestri: Q/Q income increase used to be 27 percent. greater China performance was particularly spectacular, because of better than anticipated iPhone outcomes.

iPhone sales confirmed forty p.c Y/Y increase. reasonable unit sale worth $650+.

Mac sales grew 10 % Y/Y.

New records for iPad gross sales in China and Japan. “extra muted [sales] in different markets.”

Retail: 21 outlets in larger China, moving toward 40.

financial analyst questions/answers:

question re iPhone switchers — Tim prepare dinner says lots of first time consumers (rising markets) and Android switchers amongst iPhone patrons this past quarter.

query about whether or not the Apple Watch is selling smartly — Tim prepare dinner says “demand is larger than supply.” the corporate is working to hurry up supply of pre-orders. with the aid of sometime in late June we look ahead to with the ability to promote the Apple Watch in new nations.

We’re a long way beforehand of the place we anticipated to be from an functions standpoint. When iPad launched there have been only 1,000 apps vs. 3,500 for the Apple Watch. “We’re studying quickly about purchaser preferences . . . we’re making changes . . .”

query about iPhone market share growth — Tim cook dinner says that the approaching quarter seems to be “very superb.” Doing smartly with each switchers and first-time buyers. About 20 p.c of “lively [iPhone] put in base has upgraded to iPhone 6/6+,” suggesting “a whole lot of upside” nonetheless to return.

any other query in regards to the Watch, expressing skepticism about sales/demand — Tim prepare dinner says he’s “thrilled” with the market’s response to the Apple Watch. He adds that consumer response is “close to 100 percent sure; it’s onerous to imagine it being higher.”

prepare dinner assaults third celebration prognosis of Apple costs and margins for its merchandise.

query re demand in China: Demand for iPhone up 70 percent Y/Y in higher China. that implies 9 factors of market share acquire (per Kantar Y/Y). The Mac additionally had an “incredible quarter in China” — up 31 %. App store in China grew over one hundred pc Y/Y. the whole thing in China used to be “extremely good.”

Apple investing closely in retail and infrastructure in China. payments to builders in greater China of more than $5 billion, over 50 percent of which is past one year. Bulk of sales to chinese middle class.

query about reinvigorating iPad boom — Tim prepare dinner says that “we’re seeing cannibalization [of the iPad] from the iPhone 6 plus — and from the Mac.” He says he has little subject about that. “The underlying information” seem higher than general gross sales. First time buyer numbers in US and China are very good. “We additionally see utilization numbers which can be off the charts.”

We imagine the iPad is an “extraordinarily excellent business over the long run.”

question re whether the iPhone is just too expensive for emerging markets — Tim cook says BRIC countries have been up 64 % Y/Y  . . . “gross sales need to be coming from heart class” in these international locations. “you could’t generate these kind of numbers with out getting considerably into the center category.”

question re HBO Now and identical merchandise – Tim cook says, “We’re marrying their great content material and our nice merchandise and ecosystem . . . there’s a number of traction in there.”

We’re within the early levels of “main modifications in media for shoppers and Apple will also be part of that.”

concerning the writer

Greg Sterling

Greg Sterling is a Contributing Editor at Search Engine Land. He writes a non-public weblog, Screenwerk, about connecting the dots between digital media and real-world shopper conduct. he’s additionally VP of technique and Insights for the local Search association. apply him on Twitter or to find him at Google+.

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