Ap­ple sold fewer iPhones than in Q2 2016

Ap­ple didn’t set the world on fire with its $52.9 bil­lion quar­ter, but it’s still do­ing just fine, writes Caitlin McGarry

iPad&iPhone user - - CONTENTS -

Fresh off a record-break­ing $78.4 bil­lion first quar­ter, Ap­ple re­ported a de­cid­edly more muted Q2 of fis­cal year 2017: a profit of $11bn, or $2.10 per share, on rev­enue of $52.9bn.

The quar­ter end­ing April 1 saw no new flag­ship iPhones, though there was a re­freshed SE and a spe­cial edi­tion red model. But Ap­ple usu­ally sees a de­cline from Q1 to Q2. And the re­sults are bet­ter than the year-ago Q2, which saw profit of $1.90 per share on $50.6 bil­lion in rev­enue.

The firm’s prof­its beat an­a­lyst ex­pec­ta­tions on profit but missed slightly on rev­enue and iPhone sales, for those who care about that sort of thing.

Some things to note be­fore Ap­ple’s Q2 earn­ings call, which will shed more light on its over­all okay quar­ter. Sales in Europe and China were down year-over-year, but the Amer­i­cas, Ja­pan, and rest of the Asia Pa­cific were up. Ex­pect to hear more about China from Tim Cook and Co. on the call.

Ap­ple sold fewer iPhones in Q2 than Q1, as al­ways, but also sold fewer hand­sets than in Q2 of 2016. How­ever, the firm made more money off the iPhones it did sell this quar­ter over last – $33.25bn ver­sus $32.86bn. That in­di­cates that per­haps peo­ple are choos­ing the more ex­pen­sive 7 Plus when they up­grade.

Sur­pris­ingly, the Mac saw an up­swing in Q2. Ap­ple sold 4.2 mil­lion Macs, up from 4 per­cent year-over-year. iPad sales were down 13 per­cent, but rev­enue from other prod­ucts (which in­cludes the Ap­ple Watch) was up 31 per­cent. As Cook said, ser­vices re­main a bright spot for the com­pany as it moves to di­ver­sify its rev­enue sources. In the March quar­ter, Ap­ple made more than $7bn from ser­vices, which in­cludes Ap­ple Pay, Ap­pleCare, Ap­ple Mu­sic and the iTunes Store. That’s up from just shy of $6bn a year ago. Adding a bil­lion dol­lars to a busi­ness in one year isn’t bad, though an­a­lysts had ex­pected Ap­ple to hit $7.06bn.

Ap­ple an­nounced an up­swing in Mac sales

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