Apple posted a net profit of $10.5 billion for the quarter ended March 26, 2016 (Q2FY16) and generated revenues of $50.6 billion. However, the company provided a lower revenue guidance of $41-43 billion for the next quarter amid slowing device sales. Here are some of the key takeaways from Apple’s call with investors:
iPhone sales up 56% in India:
Apple CEO Tim Cook said that iPhone sales were up 56% this quarter. He added that “I view India as where China was maybe seven to ten years ago from that point of view, and I think there’s a really great opportunity there.”
Earlier in November 2015, Apple India crossed the $1 billion sales mark for FY15. The registrar of companies filings showed that Apple India posted a 44% increase in sales to Rs 6,472.89 crore from Rs 4,500.35 crore and net profit doubled to Rs 242.85 crore from Rs 119.48 crore.
iPhones sales slowing:
Globally however, iPhone sales slowed. Apple sold 51.2 million iPhones this quarter, down from 61.2 million iPhones in the same quarter last year. Cook mentions that the company saw a very high level of customers switching to iPhone from Android and other operating systems. “In fact, we added more switchers from Android and other platforms in the first half of this year than any other six-month period ever,” he said.
Services revenues up:
Cook mentioned that Services revenue increased by 20% to $6 billion. App Store revenue was up 35%. Apple Music now has 13 million paying subscribers. The purchase value of services tied to the company’s installed base was $9.9 billion, up 27% over last year. “The Services business is powered by our huge installed base of active devices, which crossed 1 billion units earlier this year. As we discussed on this call in January, those 1 billion-plus active devices are a source of recurring revenue that is growing independent of the unit shipments we report every three months.”
Mac and iPad sales:
Apple sold 4 million Macs, compared to 4.6 million last year, a decline of 12%. Similarly, the company sold 10.3 million iPads, a decline from 12.6 million units sold in the same quarter last year. Luca Maestri, CFO and senior vice president at Apple said that, “despite the overall market slowdown, we generated double-digit Mac growth in a number of markets, including Russia, Korea, Singapore, Taiwan, and the UAE.”
Apple rolled out Apple Pay in China this quarter and last week to Singapore. Cook said that the platform is adding around 1 million new users per week.
– Net profit stood at $10.5 billion compared to $13.5 billion in the same period last year.
– Revenues stood at $50.5 billion for the quarter, compared to $58 billion in the same quarter last year.
– Asia-Pacific (excluding Japan and China) revenues were at $3.1 billion compared to $4.2 billion in the same quarter last year.
– Our Apple coverage here.