Apple Q2 earnings: iPhone sales decline to 50.7 million units, India revenue sees double digit growth

By Karthekayan Iyer | Published on May 03 2017
Apple Q2 earnings: iPhone sales decline to 50.7 million units, India revenue sees double digit growth
HIGHLIGHTS

Apple's revenues for the quarter ending April 1, 2017, came in at $52.9 million and it expects the revenue to decline further in the next quarter

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In its second quarter earnings on Tuesday, Apple reported that it sold fewer iPhones than expected. The Cupertino-based tech giant announced that it sold 50.7 million iPhones in the quarter, a sharp decline from 78.29 million iPhones sold in the previous quarter. During the earnings call, Apple CEO Tim Cook said iPhone 7 Plus sales were extremely strong despite the decline in overall sales.

The revenues for the quarter ending April 1, 2017, came in at $52.9 billion, in-line with estimates and company's own guidance of $51.5 to $53.5 billion. Apple's earnings per share for the quarter came in at $2.10 per share versus wall street estimates of $2.02 with net income topping at $11 billion. During the second fiscal quarter, Apple iPad sales declined 13 percent year-over-year to 8.9 million units. The Mac sales, however, saw a growth of 4 percent to 4.1 million units.

The company didn't disclose Apple Watch sales numbers, but it did suggest that its wearable sales nearly doubled since last year. The revenue from other products, which includes Apple Watch, Apple TV and Beats accessories came in $2.8 million, a healthy growth of 31 percent from same period last year. The silver lining for the company continues to be its services division, which recorded 18 percent growth to $7.0 million in revenues. Apple reported 14 percent decline in revenue from greater China, a region where it faces strong resistance from local manufacturers like Huawei, Oppo and Vivo. In terms of geography, Apple saw double-digit growth in revenue in rest of Asia-Pacific, while revenues from Americas, Europe and Japan were also up in this quarter. 

During the earnings call, Apple CEO Tim Cook highlighted how the company misjudged the potential of the Indian smartphone market and revealed that it set a new March sales record in the country with double-digit growth in revenues. He added that his company will strengthen its local presence to push into world's second largest smartphone market. "We are optimistic about our future in this remarkable country," Cook stated.

In a nutshell, Apple had a pretty good quarter despite a marginal decline in sales of its marquee product. Apple continues to invest in markets like India. However, the company predicts the revenues to decline further in next quarter to $43.5-45.5 billion.

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Karthekayan Iyer

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