Its that time of the year when tech company’s in US report their quarterly financial numbers, analyst and media keep a keen eye on these announcements given the health of the company is reflected in those reports. To the extent even Nasdaq reacts either going up or down after all tech giants like Apple, Google and Facebook command a huge portion of the value in the exchange. One such company that had everyone glued into was Apple, despite reporting a surge in profit and earnings the share of the Californian tech company dropped 6.7% shaving of $50 billion in its market cap on the back of a disappointing revenue outlook. The share in currently trading at $130.75.
Sales of iPhone the bread and butter for the company was at 47.5 million for the first three months ending June, a 35% increase from the same period last year however holiday seasons which are best for the brand, peaked at 74.5 million. Sales of iPhone stood at $31.4 billion contributing more than half of their overall quarterly revenue of $49.6 billion, as for the rest iPads which sales has been dropping mustered 10.9 million in sales down 18% from a year before pulling in $4.5 billion for the company. Popularity for the device has been waning since last year, and the novelty factor which made it a pace setter has also dissipated, consumers are opting for larger screened phones and detachable laptops giving them more productivity capability than the tablets. Regardless, Apple will be upgrading its software and make the iPads more useful with split screen features to view 2 apps simultaneously in an attempt in making the iPads relevant again.
No sales figures were given on the Apple Watch, instead the latest iteration is clumped under a category called “Other Products”, together with iPods, Beats headphones, Apple TV and other accessories. These “products” attributed $2.6 billion in revenue up 49% from previous year probably due to the inclusion of the Apple Watch concurred by the company as it reported declines were seen from the other products in the category but healthy numbers from the wearable.
Macs and services like itunes, ebooks, Apple Pay and Apple Care grew in revenue making up for the rest of the profits, however industry analyst are not upbeat on this sector even though profitable they dont expect significant contribution from services like Apple Pay and the new music streaming service recently launched. As these are part and parcel of the iPhone eco-system.
