Apple reports Q3 revenues of $42.4bn, sells more iPhones than expected

26 Jul 201617 Shares

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Thanks to new products like the iPhone SE, Apple sold more iPhones than analysts had projected

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Despite Apple Q3 revenues being down 15pc year-on-year to $42.4bn, this is not as bad as analysts had been expecting. The California tech giant also sold more iPhones than anticipated.

Revenues were down from the $49.6bn reported last year.

Apple reported a profit of $7.8bn for the third quarter, compared with a profit of $10.7bn last year.

‘We had a very successful launch of iPhone SE and we’re thrilled by customers’ and developers’ response to software and services we previewed at WWDC in June’
– TIM COOK, CEO, APPLE

“We are pleased to report third quarter results that reflect stronger customer demand and business performance than we anticipated at the start of the quarter,” said Tim Cook, Apple’s CEO.

“We had a very successful launch of iPhone SE and we’re thrilled by customers’ and developers’ response to software and services we previewed at WWDC in June.”

Keep counting those Apples

During Q3, Apple sold 40.3m iPhones, bringing in $24bn in revenue – down significantly from the 47.5m iPhones sold last year, but ahead of analyst estimates.

Apple_Q3_2016_numbers

iPad unit shipments were down slightly to 9.9m in Q3, but yielded higher revenues of $4.8bn – compared with $4.5m last year – possibly due to the new iPad Pro models launched in the past year.

Apple sold 4.2m Mac computers in Q3, slightly down on the 4.7m it sold this time last year.

Apple’s Services business, including Apple Music, brought in Q3 revenues of $5.9bn.

Other products, including iPod devices and Apple Watch, brought in revenues of $2.2bn.

“Our services business grew 19pc year-over-year and App Store revenue was the highest ever, as our installed base continued to grow and transacting customers hit an all-time record,” said Luca Maestri, Apple’s CFO.

“We returned over $13 billion to investors through share repurchases and dividends, and we have now completed almost $177 billion of our $250 billion capital return program.”

Looking ahead to the fourth quarter, Apple is projecting revenues of between $45.5bn and $47.5bn.

iPhone SE image via Shutterstock

Editor John Kennedy is an award-winning technology journalist.

editorial@siliconrepublic.com