Apple sells 47.5 million iPhones during its fiscal third quarter; stock plunges

Apple sells 47.5 million iPhones during its fiscal third quarter; stock plunges
Apple slightly beat estimates for iPhone sales during its fiscal third quarter, selling 47.5 million units of its iconic smartphone. That is a 35% year-over-year increase in unit sales of the device. Wall Street was looking for the company to report sales of 47 million iPhones for the period. Handset sales made up 63% of Apple's total revenues of $49.61 billion. The average price of a purchased iPhone rose by more than $100 to $662.42 thanks to the pricier Apple iPhone 6 Plus. Overall, iPhone sales rose 59% in dollar terms to $31.37 billion. "The gap is widening between us and our competitors," said Tim Cook, Apple CEO.

This was the first quarter that included the new Apple Watch, but the tech titan did not separate sales of the timepiece. Instead, Apple included it with a category called "other products." Revenue of that category rose year-over-year by 49% to $2.64 billion. Mr. Cook noted that the product is available in only 1% of the locations where the iPhone can be found.

The Apple iPad continued to run into problems. For the sixth consecutive quarter, unit sales declined, this time by 18% year-over-year.

Because Apple just barely beat the Wall Street estimate for iPhone sales, the stock is getting smacked by investors. In after hours trading, Apple's shares are down more than $9 from Tuesday's close, trading at $121. That is a decline of nearly 8% since the earnings were announced.

source: WSJ

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56 Comments

1. InsertUsernameHere

Posts: 430; Member since: Aug 31, 2014

Cool. Eagerly waiting for the iPhone 6S/6S+.

27. QWERTYphone

Posts: 654; Member since: Sep 22, 2014

F@ck Apple !!!!

30. InsertUsernameHere

Posts: 430; Member since: Aug 31, 2014

Cool story, bro.

2. theguy2345

Posts: 1216; Member since: Jun 24, 2014

It's just amazing how many devices they sell. And they do absolutely nothing. Minor increases, and people just flock to it.

3. SirYar

Posts: 351; Member since: Jul 02, 2014

Because they have the "Cult" or as Android fanboys call them - iSheep.

4. tedkord

Posts: 17198; Member since: Jun 17, 2009

Who cares? If people want to buy it, that's their business.

6. InsertUsernameHere

Posts: 430; Member since: Aug 31, 2014

Exactly. It's their money, so they can spend it on whatever they want to.

5. InsertUsernameHere

Posts: 430; Member since: Aug 31, 2014

If you know how to market your product, it sells. That's one of the reasons why companies like Apple and Samsung sell so much, while HTC is struggling because they don't know how to market(along with other issues).

12. GoBears

Posts: 456; Member since: Apr 27, 2012

As much as I despise Apple, they sure know how to market and make money. Damn.

18. Ruturaj

Posts: 1484; Member since: Oct 16, 2014

Apple uses very good strategy, the never go full throttle on their iphones. Processor in 5S was poerful enough that they could have gone larger screen, 2 gb RAM, better modem and 12MP camera at that time only. They used bigger screen and minor improvement in processor for 6 and they will increase RAM, camera and go for better modem in 6S. So there's always a reason to upgrade your phone. But they always go full throttle on their ipads and macbooks where market is tough and they have no other option. ipad air 2 is a great device and I guess apple absolutely can do nothing today to improve it.

38. CreeDiddy

Posts: 2135; Member since: Nov 04, 2011

Not true. Apple goes with what works for 95% of their consumers and every iteration of iPhone that releases they continue with their S series as many can not distinguish between 4 or 4S, 5 or 5S, now 6 and 6S. The whole purpose is provide similar experience to the previous generation model, but with upgraded internals. Also the success of the iPhone 6 in performance, styling, and overall sales does not require any changes. If you look at the auto industry, car manufacturers release cars that look the same for 3-4 years. Why because its successful and requires major shift in costs and expenses if they changed their cars year to year. On the other hand, Android is dog eat dog and Android manufacturers have to make their phones stand out. That is why you see 8-cores, 4GB of RAM, QHD. Apple doesn't need specs to sell their phones. It's about customer service and experience you get with their products.

42. j2001m

Posts: 3061; Member since: Apr 28, 2014

Android does also run on a vm and then a Skin on top, so you going to need hi specs, if Samsung was able to add tizen to the s6 edge and they had all the apps as they do on android, it make the iOS look very bad Tizen runs without lag or any type of problem on very cheap hardware and we all get updates, I so hope samsung sort this out tizen is the best OS going (if you do not look at the apps) I.e Tizen with the Google App Store and the. All working is a dream,

7. Busyboy

Posts: 731; Member since: Jan 07, 2015

Is this really "Breaking" news? Not surprising sales IMO.

10. CreeDiddy

Posts: 2135; Member since: Nov 04, 2011

A single quarter is bigger in growth and profit than all of Android throughout one year.

16. rob5150

Posts: 183; Member since: Oct 31, 2011

Android has 80+% of the global market

19. CreeDiddy

Posts: 2135; Member since: Nov 04, 2011

Market share means nothing running at flat margins.

24. CreeDiddy

Posts: 2135; Member since: Nov 04, 2011

Android is a sum of its parts. The entire pie encompasses Samsung. Give me a breakout of the manufacturer that you use then provide me a summary of each individual Android manufacturer.

28. willard12 unregistered

Better yet, can you give us a breakout of the amount of money from Apple's profit that you received from them? Corporate profit means nothing from the consumer side. Cheerleading Apple's high profit at a minimal market share is only showing how excited you are for paying a high price for a device that was inexpensive to make.

35. bucky

Posts: 3774; Member since: Sep 30, 2009

His response was directly aimed at the android market share post. He isn't cheerleading, simply replying.

40. CreeDiddy

Posts: 2135; Member since: Nov 04, 2011

Thanks bucky. willard12 wants to get in a "you don't have any of Apple's profits, so why do you care". He doesn't realize that every product or service we buy contributes to any business growth, profitability, and revenue. He thinks that Apple products are the only products that generate tons of profit for Apple. The gas we put in our cars has some sort of profit. The food we eat has some sort of profit. The banks that charge ATM fees generate overall profit. He doesn't understand the big picture...I know...

36. CreeDiddy

Posts: 2135; Member since: Nov 04, 2011

It's all in rooting interest. Unfortunately, based on your avatar you seem to like LG products and their is nothing to cheer about year to year. EVERY PRODUCT YOU BUY....most buyers, distributors, retailers, and consumers contributes towards a products success and long term revenue and profitability of that manufactured product being sold. Apple provides a value proposition that is different than Android. You're problem is that you either refuse to pay for an Apple product or finding something that is more affordable. That is fine as long as it works for you.

44. Commentator

Posts: 3722; Member since: Aug 16, 2011

Profit does mean something to the consumer in the sense it guarantees their products will be supported for longer. Companies like HTC and Sony may make good phones, but I'd give Apple a much better chance of still being in the business in five years.

52. coldspring22

Posts: 349; Member since: Feb 28, 2015

Absolutely true - apple has tons of profits that is just sitting in the bank, doing nothing to improve apple competitiveness. Bottom line is that Android is gaining and leading apple in all fronts - web browing, web click throughs and app revenue. Cook seems blind to it, but Apple's growth has slowed down tremendously in past year despite introduction of iphone 6 and iwatch, and will likely go negative soon, as company depends completely on single product - iphone. Cook is desperately searching for the magic which will re-ignite apple growth, but will he find it?

17. Ruturaj

Posts: 1484; Member since: Oct 16, 2014

So tell me, hoe much of that profit you got?

20. CreeDiddy

Posts: 2135; Member since: Nov 04, 2011

No different if Samsung or HTC was winning. Enjoy your Android.

53. coldspring22

Posts: 349; Member since: Feb 28, 2015

Sure, android users don't care which vendors are winning. Unlike apple fanboys who have blind loyalty to almighty Apple, android users simply buy the best product out there be it Samsung, Sony, HTC, Xiaomi or any of hundreds of manufacturers.

11. wando77

Posts: 1167; Member since: Aug 23, 2012

Apple shares dropping shortly before the release of their next phone...... surprise surprise

13. DRS1977

Posts: 678; Member since: May 27, 2015

It will be very interesting to see how well the 6S does. If or if not people have already gotten their fill of "big iPhones" that they have waited years for.

54. coldspring22

Posts: 349; Member since: Feb 28, 2015

Iphone 6s is likely to be mostly a spec bump. But then isheeps don't care about spec bumps, so what will drive sales of iphone 6s?

14. darkkjedii

Posts: 30900; Member since: Feb 05, 2011

Happens every year, right before the new phones come out, and blow the roof off sales wise. Except nothing different this year.

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