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Apple: iPhone 7 helps US giant return to growth | Apple: iPhone 7 helps US giant return to growth |
(about 3 hours later) | |
Apple reported its highest ever quarterly revenue, as the iPhone 7 helped it return to a growth in sales in the final three months of 2016. | |
In its first full quarter since the iPhone 7's release, Apple reported net sales of $78.4bn (£62.3bn), up 3% on the same period a year ago. | In its first full quarter since the iPhone 7's release, Apple reported net sales of $78.4bn (£62.3bn), up 3% on the same period a year ago. |
Chief executive Tim Cook said Apple had sold "more iPhones than ever before". | Chief executive Tim Cook said Apple had sold "more iPhones than ever before". |
It had also set new records for revenues from its Mac, Apple Watch and services divisions, he said. | It had also set new records for revenues from its Mac, Apple Watch and services divisions, he said. |
Apple shares rose 3% in after-hours trading following the results. | |
iPhone recovery | iPhone recovery |
"We're thrilled to report that our holiday quarter results generated Apple's highest quarterly revenue ever, and broke multiple records along the way," Mr Cook said. | "We're thrilled to report that our holiday quarter results generated Apple's highest quarterly revenue ever, and broke multiple records along the way," Mr Cook said. |
Apple had suffered three quarters in a row of falling revenue as mounting competition, particularly from Chinese rivals, hit sales of its flagship iPhone. | |
In April, the firm reported its first fall in quarterly revenue since 2003, hurt by slowing business in China. | |
A continued slowdown in iPhone sales - which account for two thirds of income - led to Apple reporting a drop in annual revenue in October, the first such fall in 15 years. | |
Analysis - Dave Lee, BBC North America technology reporter | |
A momentary sigh of relief for Tim Cook as the iPhone performs very well indeed over the holidays. | |
But it's worth looking to the future a little, because that's what investors do in these situations. | |
In its forecasts, Apple said it anticipated people holding off from upgrading until the new iPhone is revealed, meaning a slump in growth, or maybe a return to decline, over the next few months. | |
While people waiting for the new phone is nothing out of the ordinary, you get the sense Apple fans, both casual and dedicated, are gearing up for something extraordinary. | |
And that's because this will be the 10th anniversary iPhone - and some are hoping for a major new innovation, rather than the slightly more incremental improvements made in the past couple of years. | |
As ever, Apple is a victim of its own success. Pressure weighs heavy ahead of the launch which will likely be in September. | |
Mr Cook said demand was particularly high for the larger iPhone 7 Plus during the quarter. | |
The iPhone 7 models - which were released in September and included an improved camera but ditched the traditional headphone socket - now account for about 17% of Apple's phone sales, according to research firm Localytics. | |
Apple said it had sold 78.3m iPhones in the three months to 31 December, up from 74.8m a year before. | |
It reported revenue of $54.3bn from iPhone sales, along with $7.2bn from the Mac, $5.5bn from the iPad and $4.0bn from other products, including the Apple Watch. | |
Services boom | |
Revenues from its services division - including the App Store, Apple Music and iCloud - were $7.1bn. The segment is now close to overtaking the Mac as Apple's second biggest source of revenue. | |
"Services obviously continues to be a real success story for them," said Jackdaw Research analyst Jan Dawson. "It's one of the fastest-growing segments they have, driven largely by the App Store." | |
Analysts expect growth in services to help offset declining hardware sales as the smartphone market matures. | |
Apple executives warned that some customers were holding back on phone upgrades in anticipation of the 10th anniversary iPhone later this year. |