Apple CEO Tim Cook said during an analyst call that the company has sold 1.2 billion iPhones till date since the launch of the first model 10 years ago. This is up from the 1 billion iPhones that the company sold exactly a year ago.

During the quarter ended June 2017 (Q3 2017), Apple sold 41.02 million iPhones, which is down by 19% when compared to 50.76 million units in the previous quarter. iPhone sales generated revenues of $24.84 billion in Q3 2017, up marginally by 3% from $24.04 billion a year ago. On a QoQ basis, iPhone sales were down by 25% from $33.24 billion.

Luca Maestri, CFO of Apple Inc said during the call that the company “reduced iPhone channel inventory by 3.3 million units, leaving us with our lowest level of channel inventory in 2.5 years”. Average Selling Price (ASP) of an iPhone was at $606 during the quarter, up from $595 a year ago. Maestri credited the increase in ASP to “to strong demand for iPhone 7 Plus, which represented a higher percentage of the iPhone mix compared to the Plus model a year ago.”

Other device and software updates from the con-call:

On iPad Sales

The iPad has witnessed double-digit sales growth in many geographic segments like U.S., Japan, Germany, France, and Greater China, according to Maestri. “We achieved our highest global market share in over four years based on IDC’s latest estimate of tablet market results for the June quarter. And in markets like China and Japan, over half of iPads sold were to people buying their very first iPad,” Tim Cook added.

  • Total iPad units sold: 11.42 million, up 15% YoY from 9.95 million units.
  • Q3 ’17 iPad sales revenue: $4.96 billion, up 2% YoY from $4.87 billion

On Mac Sales

Revenue from Mac sales grew by 7% when compared to last year, “driven by the strength of the MacBook Pro and iMac despite IDC’s latest estimate of a 4% unit contraction in the global PC market,” Cook said during the call.

  • Total Mac units sold: 4.29 million, up marginally from 4.19 million units a year ago.
  • Q3 ’17 Mac sales revenue: $5.59 billion, up 7% YoY from $5.23 billion

On Apple Watch and other devices

The company made $2.73 billion in sales revenue during Q3 2017 from devices including Apple TV, Apple Watch, Beats products, iPods and Apple-branded, and third-party accessories. This is up by 23% YoY from $2.21 in Q3 2016. Cook pointed out during the call that “sales of Apple Watch were up over 50% in the June quarter (Q3).”

Home automation using Homepod

Cook mentioned during the analyst call that the company is working on adding more functionalities to its Homepod device that was unveiled during the Apple WWDC developer conference held in June. Currently, Homepod can be used to “send messages, set a timer, get updates on news, sports, and weather, or control smart home kit devices by simply asking Siri to turn on the lights, close the shades, or activate a theme” .“And we might even have some others to share with you later in the year,” Cook added.

On Service segment

Apple generates revenues of $7.26 billion during the quarter from its digital content segment and other services like AppleCare, Apple Pay, Apple Music among others. This is up 23% YoY from $2.21 billion in Q3 2016. “The App Store was a major driver of this performance….and across all of our Services offerings [mentioned above], the number of paid subscriptions reached over 185 million, an increase of almost 20 million in the last 90 days alone,” Maestri said.

Speaking on Apple Pay, Maestri said that “three out of four Apple Pay transactions happen outside the U.S.” The company is also planning to launch P2P payments for Apple users in the US by end of this fall. “We launched Apple Pay in Italy in May. And the UAE, Denmark, Finland, and Sweden are scheduled to go live before the end of this calendar year. Apple Pay is by far the number one NFC payment service on mobile devices, with nearly 90% of all transactions globally,” he added.

Financials

  • Total revenue of $45.4 billion in Q3 2017, up 7% YoY from $42.35 billion.
  • Net Income (Profits): $8.71 billion, up 11% YoY from $7.79 billion
  • Operating income of $10.76 billion, up 6% YoY from $10.1 billion