Apple iPad sales grow year-over-year for the first time since 2013

This time of year isn’t usually great for Apple’s hardware sales, but the company’s newly released Q3 earnings has at least one pleasant surprise. In addition to raking in $ 45.4 billion in revenue over the past three months, Apple also said it sold 41 million iPhones and 11.4 million iPads. That works out to tepid growth of 1.5 percent for iPhones over last year, but the iPads? We’re looking at a jump of nearly 15 percent since last August. This also marks the first time iPad sales have grown year-over-year since the halcyon days of 2013. (Yes, Apple’s fiscal Q1 2014 earnings showed a yearly lift in iPad sales, thanks to all the iPads sold during the 2013 holiday season.)

That iPhone sales basically stayed flat is little surprise — Tim Cook himself said last quarter that incessant reports about new models stymied sales, and we’re now about a month away from new iPhone announcements. Meanwhile, iPads — and the tablet market in general — have been looking anemic at best for a while now. This quarter’s notable lift is thanks to the launch of multiple new models this year, from a pair of new iPad Pros to a low-cost, $ 329 model meant to help new customers and upgraders with old ‘Pads experience what new versions of iOS can offer. Unfortunately, Apple didn’t mention whether this surge in tablet sales was mainly attributable to those beautiful new Pros or its rock-solid cheap tablet.

Mac sales, meanwhile, remained essentially flat with just about 4.3 million units sold. People clearly weren’t too thrilled about the refreshed machines Apple showed off at WWDC, but the big stuff hasn’t arrived yet. We’ll see what happens when that sleek new iMac Pro goes on sale later this year.

The seasonality of Apple’s fortunes is well understood — Q3 is generally pretty quiet as people gear up for the announcement of new products in September. (The financial party really kicks into high gear in Q1, when Apple the results of its typically-bonkers holiday sales period.) Since lulls like this are relatively easy to foresee, Apple has to be proud that its service revenue — the money it makes off things off iTunes and App Store purchases, Apple Music subs, iCloud and more — is also up. Altogether, those purchases add up to $ 7.26 billion, up 22 percent since this time last year. Apple CFO Luca Maestri specifically pointed to Apple Music and iCloud storage as two areas that saw notably strong growth.

And then there’s all those other products, like AirPods, Watches and more, that Apple handily lumps into a single category called “Other Products.” This time, the company reported $ 2.75 billion in revenue, which is up a whole lot from last year but not so much from last quarter. The year-over-year jump is to be expected since Apple’s surprisingly popular AirPods weren’t available until the winter of 2016; the very slight decline since last quarter could mean people aren’t buying AirPods quite as rapaciously as before, or that Apple is (still) having trouble producing in large enough quantities.

CEO Cook did, however, point out that Watch sales were up 50 percent year-over-year. Sadly, Apple is still more than happy to avoid breaking down revenue into slices for its wearables and accessories, so it’s hard to say for sure which products contributed most to this segment’s growth.

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iPhone sales continue their slow and steady slide

Apple just released earnings details for the last quarter, and the company couldn’t quite keep iPhone sales growing for the second quarter in a row. The company sold 50.8 million iPhones in the last quarter, down a scant one percent from the 51.2 million it sold a year ago. It’s worth remembering that last year marked the first quarter where iPhone sales didn’t grow year-over-year, so this decline isn’t exactly a surprise. The iPhone 7 briefly managed to turn things around last quarter, but we’re now back to seeing sales decline, albeit very slightly.

Despite the iPhone slide, Apple’s revenue increased to $ 52.9 billion on the quarter, up five percent year-over-year. Some of that could be due to the Mac — Apple sold 4.2 million Macs in the quarter, a four percent increase over a year ago. That marks the second consecutive quarter of Mac growth, despite the grumbling coming from both fans and press about the lack of updates Apple’s computers have received in recent years.

Apple’s third major product category, the iPad, once again failed to turn around sales that have slumped for more than three years now. The company sold 8.9 million tablets, down nine percent from the 10.25 million it sold a year ago. But Apple’s services business keeps growing — revenues of $ 7.04 billion marked an 18 percent increase year-over-year. CEO Tim Cook said that App Store revenue grew 40 percent year-over-year and hit a quarterly high, and Apple Music also hit double-digit growth.

And the “other products” business, which includes the Apple Watch and Apple TV, jumped up a whopping 31 percent. Perhaps Apple’s wearable is doing better than people give it credit for. Indeed, Cook said on Apple’s earnings call that Watch sales nearly doubled year-over-year in the last quarter.

But things are likely not going to get any easier on the iPhone front for Apple any time soon. The company’s biggest rival Samsung just launched the Galaxy S8, a phone that gives Samsung a significant edge over what Apple currently offers. Naturally, loyal Apple fans aren’t going to be abandoning the ecosystem any time soon (and that growing services revenue is good evidence of their loyalty), but Samsung now likely has until September at least to press its advantage.

Source: Apple

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Samsung’s Galaxy S8 hits sales records despite the Note 7’s flameout

As Samsung was readying the Galaxy S8, everyone wondered if the company would be able to recover from the disastrous, exploding Note 7. From a pure quality of hardware perspective, the S8 appears to be a home run — as long as nothing unexpected happens. The other question is whether customers would reject Samsung after the hit it took last year, but it sounds like that hasn’t happened: Samsung says that pre-orders for the S8 and S8+ were the best it has ever seen.

Specifically, the company says that pre-sales for the two devices were up 30 percent compared to the Galaxy S7 pre-orders from 2016. Samsung said the S7 was the previous best launch it had, but now that title is held by the company’s latest smartphone. Of course, Samsung isn’t giving us any hard numbers so it’s hard to say just how well this launch went compared to how the iPhone 7 went last fall, for example. But in July, Samsung will report its quarterly financials — and we’ll get a better idea of how the S8’s launch affected the company’s bottom line then.

In the meantime, Galaxy S8 owners will have a software update to keep an eye out for. It’s a fix for the first little bug to plague the phone: a screen that looks to be more red-tinted than most would like. Samsung confirmed there’s nothing wrong with the phone’s screen and said that a software update adjusting the screen’s color calibration will be coming this week.

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iPhone 7 turns around slowing sales for Apple

iPhone sales were bound to start dropping sooner or later, but today’s earnings news from Apple sees a turnaround: iPhone sales are back up after a year. In the first full quarter with the iPhone 7 and 7 Plus on the market, Apple sold 78.3 million smartphones. That’s up about five percent from a year ago, when the company moved 74.8 million iPhones. Historically, a new iPhone model has guaranteed that sales would be up as well — and even though the iPhone 7 is a rather iterative model, it was enough to do the trick.

As the iPhone goes, so goes Apple’s overall financial health. This quarter (the company’s first quarter of its 2017 fiscal year), revenue of $ 78.4 billion and profits of $ 18.4 billion are massive numbers and both increases on a year ago.

The Mac was another winner this quarter — but just barely. The company sold 5.37 million Macs, up a small 1.4 percent over the year-ago quarter. It’s not surprising that the first MacBook Pro refresh helped out the overall line, although it’s a pretty small bump over last year. The iPad wasn’t so lucky, with sales of 13.1 million representing yet another down quarter. That’s 19 percent less iPads than Apple sold a year ago, and we’re now looking at three full years of declining iPad sales. While Tim Cook has continued to say the product is how Apple defines the future of computing, the numbers don’t lie, and it’ll be interesting to see if he addresses the continued drop today.

Apple is continuing to decline to say how many Apple Watches it sells, so all we have to go on there is Tim Cook’s word — the CEO said that it was a record quarter for Apple Watch revenue. However, revenue in the “other products” category (which covers things like Beats, the iPod, Apple TV and accessories in addition to the Apple Watch) declined year over year, so the Watch wasn’t quite enough to make up for losses in other product categories.

The last big part of Apple’s business is is services business, which covers things like Apple Music, iCloud, the App Store and so on. It was a big winner this quarter, continuing the trend we saw in 2016. Apple says that the $ 7.17 billion in revenue from services is a record, though in terms of overall revenue it’s now just slightly behind the Mac ($ 7.24 billion) in terms of how much overall cash it pulls in.

As usual, Apple will be holding a call with CEO Tim Cook and we’ll be updating this post with anything else we learn. Elephants in the room include the iPad, when the company might get more AirPods to consumers, and what the response has been to the new MacBook Pro. We’re guessing he’s going to say that customers just love it.

Source: Apple

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Bloomberg: AT&T considering a halt on Galaxy Note 7 sales

Reports that a Galaxy Note 7 issued as a replacement caught fire on an airplane may be too much for at least one carrier. Bloomberg cites a single unnamed source claiming that AT&T is “considering” stopping sales of the troubled phone based on that incident. Although AT&T (along with Sprint, T-Mobile and Verizon) have already issued statements indicating that customers can return or exchange their replacement phones, this would go a step further. The rumored deadline for the decision is Friday, which would put pressure on Samsung to figure out what’s going here.

While phones that weren’t recalled have caught fire on flights before, like this iPhone that grounded an Alaska Airlines flight in March, the spate of problems with the Galaxy Note 7 and subsequent recall have everyone, understandably, on high alert.

Tonight, Samsung issued a statement indicating it’s continuing to look into this latest incident, we’ll see what happens next.

Samsung understands the concern our carriers and consumers must be feeling after recent reports have raised questions about our newly released replacement Note7 devices.

We continue to move quickly to investigate the reported case to determine the cause and will share findings as soon as possible.

We remain in close contact with the CPSC throughout this process.

If we conclude a safety issue exists, we will work with the CPSC to take immediate steps to address the situation.

We want to reassure our customers that we take every report seriously and we appreciate their patience as we work diligently through this process.”

Source: Bloomberg

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