On Tuesday night, Apple announced its Q3 results – traditionally a subdued affair as consumers wait for newer products, like the latest iPhone – and posted its second straight quarter of double digit percentage growth in iPhone sales.
The tech giant also reported a higher-than-expected net income of $7.7 billion (around £4.5 billion) of net income on revenue of $37.4 billion (roughly £22 billion), with per-share profit coming in at $1.28, higher than the expected $1.23.
However, many results were still below what forecasts expected.
Growing share in smartphone market
Figures from eMarketer have revealed Apple’s share of the smartphone market is growing in the US and estimates indicate it will rise from 40% in 2013 to 40.5% by the end of 2104.
It’s market share is expected to grow even more in the UK, rising from 29% in 2013 to 30.5% in 2014.
Interestingly though, over the last quarter sales of Microsoft handsets (36.1 million) were stronger than Apple (35.2 million).
But how exactly did those results pan out?
Apple’s Q3 results
Revenue: $37.43bn v $38bn expected
EPS: $1.28 v $1.23 expected
iPhone sales: 35.2m v 35.3m expected
iPad sales: 13.3m 14-15m expected
September quarter revenue: $37-$40bn v $40.4bn expected
September quarter gross margin: 37-38pc v 37.5pc expected
Apple CEO, Tim Cook, said: “It’s been a very busy and exciting time at Apple,” detailing new features in iOs 8 and OS X Yosemite “iPad sales met our expectations, but we realise they didn’t meet many of yours [shareholders].”
It was also noted that more than half of customers buying an iPad are buying their first iPad.
Cook went on to say: “Looking ahead, we are very excited about the agreement to purchase Beats. Music is part of Apple’s DNA, and the addition of Beats team will be great for music lovers. Beats provides Apple with a great subscription service, access to tablet, and more.”
What the results show us is that the company is maintaining momentum but there’s a gaping hole when it comes to new technology and it could be that, come the autumn, Apple will have to announce more than a re-vamped iPhone or iPad to keep consumers happy.