iPad sales steal spotlight as Apple posts revenue, profit growth in 3rd quarter
Why it matters to you
Sales of iPads helped boost revenue during Apple’s fiscal third quarter, and may have been driven in part by a new iPad that costs just $329.
Apple’s fiscal third quarter of 2017 showcased growth in both revenue and profit. The company’s revenue went up 7 percent year over year, marking the third consecutive quarter of accelerating growth, along with an all-time quarterly record for revenue in the services sector.
The company sold more than 41 million iPhones during the quarter, which is right in line with analysts’ prediction of 41.1 million units. Revenue increased 7.2 percent, with earnings of $45.4 billion eclipsing the $44.9 billion projection.
Although a large percentage of Apple’s revenue comes from the iPhone, the iPad posted impressive results. The company shipped 11.4 million iPads during the third quarter — a 28 percent increase from the 9.5 million units sold during the previous quarter. The latest metrics show iPad unit sales up 15 percent year over year.
The recent jump in units sold may be driven by the new iPad that costs only $329 . In Apple’s earnings report, CEO Tim Cook said the iPad was also performing well in China. Cook expressed his excitement for iPads going forward, referencing the iPad launch the company held at the end of March, along with the announcement of the iPad Pro in June.
The latest models showcased at the 2017 Worldwide Developer Conference were the iPad Pro 10.5 and iPad Pro 12.9. Both boast sleek, slim designs, along with redesigned software focused primarily on productivity. While the tablets have the same physical footprint as their predecessors, they feature narrower bezels, along with Apple’s True Tone technology that adjusts the color temperature based on lighting conditions.
The new iPad Pro 10.5 and 12.9 models also feature Apple’s six-core A10X processor and a 12-core GPU, as well as a battery life of up to 10 hours. They also include the latest software additions from iOS 11 — Apple’s upcoming mobile operating system.
From the iPhone 8 — reportedly delayed until late 2017 — to the HomePod smart speaker going on sale in December, Apple has some exciting products in the pipeline. The report also shows Apple is projected to earn revenue between $49 billion and $52 billion in the fourth quarter.