Ap­ple sales in China up 112%

China Daily (Canada) - - FRONT PAGE - By PAUL WELITZKIN in New York paulwelitzkin@chi­nadai­lyusa. com

Ap­ple Inc re­ported thirdquar­ter earn­ings on Tues­day that edged an­a­lysts’ ex­pec­ta­tions, with rev­enue in greater China reach­ing$13.2 bil­lion, an in­crease of 112 per­cent year-over-year, and the sale of iPhones climb­ing 85 per­cent.

Ap­ple CEO Tim Cook said that the growth in greater China was “out­stand­ing” — the Mac App Store rev­enue more than dou­bled in China. The Cu­per­tino, Cal­i­for­nia-based com­pany said it in­tends to open 40 stores in China by the mid­dle of next year.

Ap­ple re­ported net in­come of $10.7 bil­lion, or $1.85 a share for the pe­riod ended June 27 on rev­enue of $49.6 bil­lion. Ac­cord­ing to Bloomberg, an­a­lysts on av­er­age were look­ing for third-quar­ter profit of $1.81 a share and rev­enue of $49.4 bil­lion. In the year-ago quar­ter, Ap­ple had net in­come of $7.7 bil­lion, or $1.28 a share on rev­enue of $37.4 bil­lion.

But Ap­ple’s iPhone ship­ments for the quar­ter and the com­pany’s rev­enue forecast for the fourth quar­ter were be­low an­a­lysts’ pro­jec­tions.

Ap­ple sold 47.5 mil­lion iPhones, a 35 per­cent gain, which ac­counted for 63 per­cent of the com­pany’s rev­enue in the quar­ter. An­a­lysts had an­tic­i­pated 48.8 mil­lion.

Ap­ple didn’t re­port sales of the Ap­ple Watch, which was in­tro­duced in April. An­a­lysts pre­dicted on av­er­age 3.4 mil­lion sales of the Watch with an av­er­age selling price of $499, ac­cord­ing to the Bloomberg sur­vey. In a cat­e­gory called “Other,” it in­cluded re­sults for the smart­watch, along with items such as Beats head­phones and iPod sales. Rev­enue in the cat­e­gory rose 49 per­cent to $2.64 bil­lion, the com­pany said.

The com­pany forecast rev­enue of $49 bil­lion to $51 bil­lion in its fis­cal fourth quar­ter, which ends in Septem­ber, short of the av­er­age es­ti­mate for $51.1 bil­lion, ac­cord­ing to data com­piled by Bloomberg.

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. In­ter­na­tional sales ac­counted for 64 per­cent of the quar­ter’s rev­enue.

Ap­ple’s gross mar­gin im­proved to 39.7 per­cent from 39.4 per­cent in the year­ago quar­ter.

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