In its third quarter, newer lines business like the App Store, Apple Pay, and Apple Music have assisted the tech giant Apple Inc. in driving its growth, said the Silicon Valley giant. The services unit was a shining light, according to one analyst, while the sales were strong for the hardware – including iPads and iPhones – of the iPhone maker.
Apple revenue grew 7% year-on-year
The quarterly profit of the tech company rose 12% to over $8.7 billion (£6.6bn) while the revenues increased by 7% year-on-year to $45.4 billion. This news about the profit and growth in revenue sent the stock of the Silicon Valley giant surging more than 5% in after-hours trade.
The iPhone maker that forecasted strong sales as well, may release new and updated iPhones the coming month. Tim Cook, the Chief Executive Officer of the Silicon Valley giant, did not disclose much when it came to details on the new release. Cook said reports about the new iPhones may have caused some people to discontinue their purchases of the phones that already are in the market. He added, “But while that affects us in the short-term, it probably bodes well.”
According to the tech giant, the number of iPhones sold in the quarter grew a robust 2% year-on-year even when some customers were waiting for the new models, which are expected to come this September on the 10th anniversary of the tech giant. The increase in sales was driven by strong demand of Apple hardware in markets like the Middle East and Latin America.
Sales of iPad increases 28%
According to recent reports, the growth in sales of the iPhones and other hardware of the tech giant lifted revenue from iPhones. The sale of iPhones account for most of the sales of the company and it rose by 3% to $24.8 billion.
In addition to this, the number of iPads sold jumped 28% year-on-year while the revenue from the product grew 2%, notes the Cupertino-based iPhone maker. Revenue from other devices such as the Beats products, the Apple Watch and Apple TV climbed 23% year-on-year.
However, the company saw a decline in sales in China, where the flagship iPhone of the tech giant is continuing to lose market share to several local competitors. Also, the tech company is facing challenges in dealing with the strict internet censorship regime of China.