Apple posted its Q3 2015 earnings this afternoon, and while the company missed many analysts’ lofty sales expectations following two enormous quarters, the company easily beat revenue estimates, and its own Q3 records, with revenue of $49.6 billion, net profit of $10.7 billion, with an earnings per diluted share of $1.85.
The company sold 47.5 million iPhones, a 35% bump over the same quarter a year ago. The iPhone comprises 63% of the company’s total revenue, a slight drop from the previous quarter. That said, the iPhone’s average sales price of $660, attributed to the higher-cost iPhone 6 Plus, is up nearly $100 from the same quarter a year ago.
The iPad continued its slide, selling 10.9 million units, an 18% drop from the same quarter a year ago, and the fifth straight quarter of declining unit sales.
As expected, Apple didn’t reveal Apple Watch unit sales, but the “Other” category, of which the Watch’s revenue is included, was $2.6 billion, up $900 million from the same quarter a year ago. Considering iPod and iTunes are projecting down, all of that $1 billion+ increase in revenue can be attributed to the Apple Watch.
Apple’s guidance for Q4 is expectedly conservative, with revenue estimates of between $49 billion and $51 billion, with a gross margin of 38.5% to 39.5%. The iPhone 6s and iPhone 6s Plus are expected to be announced and released days before the end of Q4, and are unlikely to materially impact Apple’s earnings for the upcoming quarter.
According to Apple’s CFO, Luca Maestri, the Apple Watch’s sales are trending higher in its first 90 days compared to the iPhone and iPad in their same debut periods, but wouldn’t divulge specific sales numbers.