Apple Q3 results are in and it’s no surprise that the company is once again up in revenue, to the tune of 33%. Apple attributes Q3 growth to iPhone sales, Mac sales, Apple services and also called the Apple Watch launch a success but not stating the watch directly impacted Q3 revenue. Apple posted a quarterly revenue of $49.6 billion and a quarterly net profit of $10.7 billion, or $1.85 per diluted share. These results compare to revenue of $37.4 billion and net profit of $7.7 billion, or $1.28 per diluted share, in the year-ago quarter. Gross margin was 39.7 percent compared to 39.4 percent in the year-ago quarter. International sales made up 64% of this quarters revenue showing growth overseas but perhaps a drop in sales in the US.
“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,” said Tim Cook, Apple’s CEO. “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.”
“In the third quarter our year-over-year growth rate accelerated from the first half of fiscal 2015, with revenue up 33 percent and earnings per share up 45 percent,” said Luca Maestri, Apple’s CFO. “We generated very strong operating cash flow of $15 billion, and we returned over $13 billion to shareholders through our capital return program.”
It’s interesting that Apple calls the Apple Watch launch a success since the watch didn’t sell as expected and it didn’t seem to have a significant impact on Q3 results. While the Apple Watch has done better than Android Wear watches, smartwatches haven’t really taken off with users just yet and still need a few cycles for the technology to mature. It will be interesting to see what version 2 of the Apple Watch brings to the table.