Apple's Q3: $10.7B profit and a 'great start' for Apple Watch

Cupertino continues to make money hand-over-fist with strong iPhone sales and record revenue from services.

cook connects

Apple has radically improved the 4G/LTE support in this model. The iPhone 6 is capable of 4G download speds up to 150Mbps and will handle HD voice calling over 4G (which carriers want to turn us all onto). And it supports 20 LTE bands -- more than anyone else right now.

Apple made a ton of money in the third quarter of the year, just as they have for many, many quarters preceding this one. Here’s how this quarter stacks up: The Cupertino company made $10.7 billion in profit on $49.6 billion in revenue, compared to profit of $7.7 billion on $37.4 billion in revenue in the same quarter last year.

Apple beat its own expectations and Wall Street’s. Analysts expected Apple to pull in revenue of $49.4 billion, while Apple forecast revenue of $46 billion to $48 billion. The company didn’t beat its record-breaking holiday quarter (when it made $18 billion in profit and sold 74.5 million iPhones), but it’s not exactly a fair comparison.

The iPhone continues to be the company’s sales juggernaut, raking in $31.37 billion on 47.5 million devices sold. Apple sold 10.9 million iPads and 4.8 million Macs.

“We had an amazing quarter, with iPhone revenue up 59 percent over last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch,” Apple CEO Tim Cook said in a statement. “The excitement for Apple Music has been incredible, and we’re looking forward to releasing iOS 9, OS X El Capitan and watchOS 2 to customers in the fall.”

apple watch workout

Apple Watch’s strong debut

Analysts and journalists are dying to know how many Apple Watches the company sold, but those figures aren’t broken out. They’re in the “other products” category, tucked away with the iPod, Apple TV, and Beats headphones. Those products brought in about $1.8 billion in the third quarter last year. This quarter: $2.64 billion.

Apple Chief Financial Officer Luca Maestri told the New York Times that in its first nine weeks on the market, Apple Watch sales exceeded the iPhone and iPad in their first nine weeks of availability.

Apple's third-quarter earnings conference call begins at 2 p.m. Pacific/5 p.m. Eastern. You can listen in here and check back for more details on iPhones, Apple Watch sales, and Apple Music's launch afterward.

This story, "Apple's Q3: $10.7B profit and a 'great start' for Apple Watch" was originally published by Macworld.

To express your thoughts on Computerworld content, visit Computerworld's Facebook page, LinkedIn page and Twitter stream.
Windows 10 annoyances and solutions
Shop Tech Products at Amazon
Notice to our Readers
We're now using social media to take your comments and feedback. Learn more about this here.