Apple posts record third quarter results, but shares drop

There's something surreal about the way the financial world reacts to Apple's results. Just look at those figures: iPhone revenues are up 59 per cent over the same period last year (April-June), quarterly revenues are up from $37.4bn to $49.6bn and net profit is up from $7.7bn to $10.7bn.

Those are eye-watering results by most company's standards, but still the shares dipped after they were announced. Analysts were apparently disappointed not to get a breakdown on how the Apple Watch is selling, some speculating that it is not proving as popular as expected.

Still, the iPhone remains the cornerstone of Apple's business with sales in China doubling over last year, and those 47.5 million iPhones sold generating $31.4bn of revenue.

The launch of the larger iPhone 6 and iPhone 6 Plus has seen sales of iPads decline by 18 per cent to 10.9 million. Macintosh sales were up nine per cent to 4.8 million units.

MORE: Apple iPhone 6 review

"We had an amazing quarter with iPhone revenue up 59 per cent, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch," says Apple's CEO Tim Cook. He has suggested that the Apple Watch is already generating sales of $1bn.

It's too early to measure the impact of Apple Music, which only launched earlier this month and is currently on offer for a free three-month trial.

Overall iPhone sales accounted for 63 per cent of sales revenues during the quarter, iPad for nine per cent and 'other categories' (which includes iPod, Apple TV, Beats headphones and the Watch) five per cent. Apple recently unveiled a new iPod Touch with up to 128GB storage in a bid to halt declining sales.

MORE: Apple Music review

MORE: Apple Watch hands-on review

Andy Clough

Andy is Global Brand Director of What Hi-Fi? and has been a technology journalist for 30 years. During that time he has covered everything from VHS and Betamax, MiniDisc and DCC to CDi, Laserdisc and 3D TV, and any number of other formats that have come and gone. He loves nothing better than a good old format war. Andy edited several hi-fi and home cinema magazines before relaunching whathifi.com in 2008 and helping turn it into the global success it is today. When not listening to music or watching TV, he spends far too much of his time reading about cars he can't afford to buy.

Latest in AV
A render of a couple watching TV in a living room with green beams used to illustrate the sound coming from the soundbar and various other speakers.
Eclipsa Audio: everything you need to know about Samsung’s new Dolby Atmos rival
Samsung QN990F 8K TV with Rewind logo
A sneak peek at Samsung’s futuristic projector, OLED TV’s next evolution, a new Audiolab stereo amp and more
Sony RGB arrangement with Rewind logo
A sneak peek at Sony's next-gen TV tech, our love letter to hi-fi shops, a high-end amp tested and more
LG C5 on stand with Rewind logo
The LG C5 OLED TV tested, a world first for headphones, new hi-fi speakers and more
Pick Of The Month March 2025 5-star products on grey background
WiiM strikes again, the B&W Zeppelin Pro impresses while Technics' latest turntable earns five-stars
In For Review logo over yellow turntable system on table
In for Review: Google’s latest streamer, a Pro-Ject turntable, Cyrus' premium CD player and more
Latest in News
iFi Valkyrie in gold with a laptop
iFi's flagship iDSD Valkyrie DAC/amp teases cutting-edge tech for a sound that's worthy of Valhalla
Sony Bravia Projector 8 home cinema projector
Terrible news: Sony is about to stop selling projectors in Europe, including the UK
Audiolab 6000A MkII amplifier in silver
Audiolab upgrades its five-star 6000A amplifier with a new DAC chip, enhanced circuitry and HDMI ARC
Qobuz
Qobuz reveals average payout per stream – and claims it is higher than rivals
Sonos Beam Gen 2
Quick! This five-star Sonos Dolby Atmos soundbar has dropped close to its lowest price
The Google Pixel 9a being held horizontally at waist-height so only the back is visible.
The Google Pixel 9a launches at £100 less than the iPhone 16e with a better screen