Cheaper iPads boost Apple’s Q3 earnings
Apple’s fiscal third quarter of 2017 showed positive growth in both revenue and profit
Apple has posted its third quarter results showing that the demand for iPhones is continuing to accelerate the company's momentum.
In its third quarter, Apple generated $45.4bn in revenue and $7.72bn in profit from the sales of 41 million iPhones, 11.4 million iPads and 4.29 million Macs.
Compared to the previous quarter Apple performed better with $52.9bn in revenue, $11.03bn in profit from 50.7 million iPhone, 8.92 million iPads and 4.19 million Macs sold.
However compared to Q3 2016, overall revenue increased 7% year-over-year and profit grew by 12% this year.
Despite iPhone sales contributing highly to Apple's growth, iPad sales were surprisingly up 15% compared to last year, which is most likely driven by the lower price point of $329.
Other key drivers of growth were from Services, including The App Store, Apple Music, and cloud storage, and also Other Products, such as the Apple Watch, AirPods and Beats headphones.
Apple CEO Tim Cook said: "With revenue up 7% year-over-year, we're happy to report our third consecutive quarter of accelerating growth and an all-time quarterly record for Services revenue."
Apple is set to introduce three new handsets, the iPhone 7, iPhone 7 Plus and the iPhone 8, in September. The upcoming releases could possibly generate sales of $49bn to $52bn in this year's fourth quarter, the company predicts.