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Apple posts record third-quarter as iPhone sales surge | |
(about 1 hour later) | |
Apple has posted a record third quarter as soaring demand for iPhones sent profits higher. | |
The technology giant sold 47.5 million iPhones in the quarter to 27 June, up 35% on a year ago, with Mac computer sales up 9% to 4.8 million. | |
The performance resulted in what chief executive Tim Cook called "an amazing quarter". | |
Profits rose by 38% to $10.7bn (£6.87bn), while revenue was up 33% to $49.6bn. | |
Despite the strong results, shares fell 6.7%, or $8.85, to $121.89 in after-market trading in New York. | |
Analysts blamed the fall on disappointment about the company's revenue forecasts for the fourth quarter, which were slightly lower than expected. | |
'Great start' for Watch | |
Demand for its iPad tablets remained weak, with Apple selling 10.9 million, down 18% from a year earlier. | |
But Mr Cook also said the Apple Watch had had a "great start", in the first indication of how well the company's first piece of wearable technology was selling. | |
The Apple boss said last autumn that he did not want to reveal detailed figures for the watch, which went on sale on 24 April, to avoid giving competitors inside information. | |
But Apple said that revenue from "other products", which includes the watch as well as products such as the iPod and its Beats headphones, came to $2.6bn - about $952m higher than the previous quarter. | |
Chief financial officer Luca Maestri said that revenue from the watch amounted to "well over'" that $952m increase. | |
Sales of the watch in the first nine weeks had exceeded those of both the iPhone and iPad after they were first launched, he added. | |
Cantor Fitzgerald experts say the watch will be a "go-to gift" this Christmas and become the best selling new product in Apple's history. | |
Apple also continued to do well in the China market - defined by Apple as China, Hong Kong and Taiwan. | |
Sales doubled year-on-year and accounted for more than a quarter of the company's total third-quarter sales. | |
The jump should help to reassure investors that demand in China remains robust despite fears the market is close to saturation point. | |
Colin Gillis, an analyst for BGC Partners, said the results highlighted Apple's dependence on the iPhone and the growing importance of China to the company. | |
"Where are you going to find growth in the world?" he said. "You've done an amazing job sucking all the smartphone profits into your balance sheet, but smartphone sales are slowing. What's going to happen when the industry matures, just like PCs did?" | |
S&P Capital Markets analyst Angelo Zino said: "A lot of people want to see if Apple can roll out a new product that's very successful and innovative." | |
The iPhone 6 and 6 Plus, which smashed iPhone sales records when they were launched last year, are now 10 months old. |