Strong Apple results boosted by music and apps

By Fran Roberts
Yesterday Apple announced financial results for its fiscal 2017 third quarter. The company said quarterly revenues grew by 7% year-on-year to $45.4bn...

Yesterday Apple announced financial results for its fiscal 2017 third quarter. The company said quarterly revenues grew by 7% year-on-year to $45.4bn.

Newer lines of business such as Apple Pay, the App Store and Apple Music were the main growth drivers.

The news sent its stock surging more than 6% in after-hours trade.

The Services unit, which includes Apple Pay, the App Store and Apple Music reported sales of nearly $7.3bn during the three months to the end of June, a rise of 22% on the same period last year.

“With revenue up 7% year-over-year, we’re happy to report our third consecutive quarter of accelerating growth and an all-time quarterly record for Services revenue,” said Tim Cook, Apple’s CEO.

SEE ALSO:

2017 is a big year for Apple as the iPhone celebrates its 10th anniversary. Over 1.2bn devices have been sold over the last decade

Apple is expected to launch new and updated versions of the iPhone next month, with many consumers holding off on new purchases in anticipation.

Despite this Apple said the number of iPhones sold in the quarter increased a solid 2% year-on-year, driven by strong demand in markets such as Latin America and the Middle East. 

The growth lifted revenue from iPhones, which account for the bulk of the company's sales, by 3% to $24.8bn.

The Americas and Europe also posted strong double-digit growth, which helped to sustain Apple’s performance in the June quarter.

However, China remains a problem, with revenues down 10% year-on-year to slightly more than $8bn.

Competition from local firms such as Huawei and Oppo, as well as dealing with China’s strict censorship laws, have caused Apple to lose market share in the country.

The firm recently removed a number of apps from the App Store in response to China’s regulations, something that the CEO also addressed.

“We would obviously rather not remove the apps," he said. "We're hopeful that over time the restrictions we're seeing are loosened because innovation really requires freedom to collaborate and communicate.”

Share

Featured Articles

TECH LIVE LONDON: An overview of the hybrid technology show

We take a look at the first day of Tech Live London with insights from technology leaders from companies such as IBM, Microsoft and Vodafone

TECH LIVE LONDON: Begins tomorrow at 10am!

Our marquee technology event is nearly here. There's still time to claim your free ticket (worth £295). Look forward to welcoming you to the Tobacco Dock!

Executive Q&A: Marc Lueck, CISO EMEA, Zscaler

As we prepare to welcome the Zero Trust leaders to TECH LIVE LONDON this June 23-24, we take the opportunity to chat to Zscaler CISO of EMEA, Marc Lueck

TECH LIVE LONDON: Registering, networking and logistics

Digital Transformation

New speaker from Infosys announced for TECH LIVE LONDON!

Digital Transformation

New speaker from Bernadette announced for TECH LIVE LONDON!

Digital Transformation