Apple third quarter results: iPhone X remains the best-selling and continues to drive up the average selling price (ASP) of iPhones and overall revenue of the company.
Apple announced its third quarter results with a quarterly revenue of $53.3 billion, which was an increase of 17 percent from the year-ago quarter. While iPhone sales grew just 1 per cent in terms of units, the overall revenue for the iPhone grew by 20 per cent. Apple’s growth in part has been boosted by the high prices of the iPhone X and iPhone 8 series. Apple’s services business also saw 31 per cent growth in the third quarter. Here’s a look at Apple’s results in numbers for the third quarter.
Apple iPhone numbers in Q3
Apple shipped around 41.3 million units of the iPhone in the quarter ending June 30. Compared to the second quarter, which had 52.2 million shipments, this is a 21 per cent decrease in units and 21 per cent decrease in revenue. However, compared to the same quarter a year back, this is a 1 per cent increase in shipments. But when it comes to yearly revenues for the iPhone, this was an overall increase of 20 per cent.
The reason why Apple’s iPhone revenue continues to grow on an yearly basis is the high average selling price (ASP). According to Apple’s Chief Financial Officer, Luca Maestri, Apple iPhone’s average selling price stood at $724, compared to $606 a year back. He noted that the sale of iPhone X, iPhone 8 series helped boost the ASP.
Apple iPhone revenue was up 21 per cent in the third quarter. (Image source: Bloomberg)
In fact, this is what helped the company’s revenue rise by more than 17 per cent, notes Bloomberg. The $999 iPhone X continues to boost the average ASP for the iPhone, so even with less volume, the revenue continues to grow in double digits.
In the investor earnings calls, Apple CEO Tim Cook said on the iPhone, “Revenue was up 20% year-over-year and our active installed base grew by double-digits, driven by switchers, first time smartphone buyers and our existing customers whose loyalty we greatly appreciate. iPhone X was the most popular iPhone in the quarter once again…”
“We expect strong growth from iPhone, from services and from wearables, which has been a bit of our pattern during the course of the year,”he added.
Apple’s iPad did not have such a great quarter, though it grew in China and Asia.
Apple iPad numbers in Q3 results
Apple’s iPad saw 11.5 million units being shipped, which was a jump from the 9.1 million from the second quarter of 2018, and marked a 27 per cent sequential increase. However, on an yearly basis, this was just a 1 per cent jump in the growth of the iPad. Apple’s iPad saw a negative 5 per cent growth in terms of revenue on an yearly basis. Apple notes that the company saw double digit iPad unit growth in both Greater China and rest of Asia Pacific segments.
Apple Mac numbers in Q3 results
Apple’s Mac saw around 3.7 million shipments in quarter and continues to decline. The last quarter saw 4.07 million shipments of the Mac, and the third quarter in 2017 had 4.2 million Apple Mac shipments. Apple’s Mac saw a 13 per cent yearly decline in terms of units, and 5 per cent decline in revenue.
Apple Services in Q3 results
This appears to the big area of growth for Apple, with services revenue rising by 31 per cent on an yearly basis. The total revenue stood at $9.5 billion. Just a year back, revenue from Apple’s Services business stood at $7.2 billion. According to Apple CEO Tim Cook, the growth in Services was fueled by the overall active installed base for their products. Apple is confident of doubling fiscal revenue of 2016 services revenue by 2020.
Apple’s Watch shipments continued to grow in the June quarter, according to the company.
Paid subscriptions from Apple and third parties has crossed $300 million, which is a 60 per cent increase from 2017. Meanwhile, Apple Pay has crossed over 1 billion transactions from the last quarter, and according to Cook, this was triple the amount from just a year ago. Apple also claims it has completed more mobile transactions than PayPal.
Coming to Apple Music, the service now has a 50 million listeners, including paid subscribers and those on the trial version. Apple claims to be the leader in North America with its Music service as well as in Japan.
Apple’s other products in Q3, includes AirPods, Apple Watch, Beats
Apple says that other products, which includes AirPods, Beats headphones, Apple Watch, HomePod, iPod Touch, Apple TV and other accessories saw a revenue of $3.7 billion, which is a 37 per cent yearly growth from last year when the revenue was around $2.7 billion. On a sequential basis, though this was a decline of 5 per cent.
Apple says that growth from wearables like Apple Watch, AirPods and Beats was up over 60% year-over-year. Apple Watch saw more than 40 per cent growth in the June quarter, according to the company’s executives. Apple is expected to introduce Apple Watch 4 in the fourth quarter along with new iPhone X series as well.