Apple has reported Asia Pacific revenues of $1.92 billion for the quarter ended September 27, 2014, registering a modest 2.9% decline from $1.98 billion in the same quarter last year. Note that these revenues doesn’t include revenues from Greater China (China, Hong Kong and Taiwan) and Japan region, which is reported separately.
The region accounted for 4.6% of Apple’s overall revenues that was at $42.1 billion for the quarter, up 12% year-on-year (YoY). In comparison, Asia Pacific had accounted for 5.3% of Apple’s revenues in the same quarter last year and had accounted for 5.77% of the company’s revenues in the previous quarter.
Net profit: Apple’s overall net profit increased to $8.5 billion for the quarter, from $7.5 billion profit in the same quarter last year. International sales contributed for 60% of the company’s revenue, same as the corresponding quarter last year.
iPhone sales up 16%
Apple sold a record 39.27 million iPhones in the quarter, up 16% from 33.8 million iPhones in the same quarter last year.
The segment reported revenues of $23.7 billion for the quarter, registering a significant 21% growth from $19.51 billion revenues in the same quarter last year. Apple CEO Tim Cook attributed this growth to the launch of iPhone 6 and iPhone 6 Plus last month and strong demand for its previous iPhone models.
This revenue growth also led to an increase in the segment’s contribution to Apple’s overall revenues: iPhones sales now contribute for 56.3% of Apple’s total revenues, up from 52.8% in the previous quarter and 52.1% in the same quarter last year.
With this, Apple is now headed to the most crucial holiday quarter where the devices sales tends to be the strongest. Note that the new iPhone models also went on sale in India last week, just in time for Diwali season.
Mac sales revenues surpass iPad revenues
What’s also particularly interesting is that Mac sales revenues has surpassed iPad revenues for the quarter. Mac sales generated revenues of $6.6 billion for the quarter, up 18% year-on-year (YoY) from $5.6 billion in the corresponding quarter last year while iPad sales generated revenues of $5.3 billion for the quarter, down 14% YoY from $6.2 billion in the corresponding quarter last year.
This is probably because iPad sales has been declining for the past few quarters while Mac sales has been growing continuously. Cook mentioned that Macs market share is currently at the highest since 1995.
During the quarter, Mac sales saw a significant 21% growth YoY, with the company selling 5.5 million Macs for the quarter, up from 4.57 million Macs in the same quarter last year. On the other hand, iPad sales slid for the third consecutive quarter, with the company selling 12.3 million iPads for the quarter, down 13% from 14.1 million iPads in the same quarter last year.
Apple has generated $4.61 billion revenues from iTunes sales during the quarter, up 8% from $4.26 billion revenue in the same quarter last year. These revenues includes sales revenues from the iTunes Store, the App Store, the Mac App Store, and the iBookstore, and revenue from sales of AppleCare, licensing and other services.
Cook mentions that App Store revenue grew by 36% over last year, which he claims is an all time record for the company. Cook also mentioned that the cumulative App Store downloads has now crossed 85 billion, up from 75 billion in the previous quarter. As of April this year, Apple had also claimed to have 800 million iTunes accounts, most with credit cards included.
iPod sales decline by 24%: The iPod sales declined by 24% YoY to 2.64 million for the quarter, from 3.5 million in Q4-FY13. These sales accounted for a minor $410 million of total Apple revenues for the quarter, as compared to $573 million in the same quarter last year.
Accessories: Revenues from accessories increased to $1.49 billion for the quarter, up 13% from $1.32 million in the same quarter last year. This includes revenues from sales of hardware peripherals and Apple-branded and third-party accessories for iPhone, iPad, Mac and iPod.
Changes in financial reporting structure from Q1-FY15: Starting next quarter, Apple mentions that it will be creating a new category in its financial results called “other products”, that will club iPod sales with the existing accessories category and Apple TV sales. It will also include Apple Watch sales once it starts shipping in early 2015.
The company will also have a category called services which will include revenues from iTunes and services like content, apps, licensing and other services. It will also include Apple Pay from beginning this month.