Apple Q2 2017 Earnings: Modest growth but iPhone sales fall flat

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Apple sold 50.67 million iPhones during the first three months of 2017, helping the company generate $52.9 billion USD in revenue, a 4.5 percent increase over the same period last year.

The number of iPhones consumers purchased, however, has fallen flat, dipping one percent over the same quarter last year. The average sale of each smartphone has climbed though, helping the company generate $11 billion in profit. Apple says that international sales accounted for 65 percent of the quarter’s revenue.

It’s worth noting that last year marked the first quarter where iPhone sales didn’t grow year-over-year, so for those familiar with Apple’s earnings, the decline in iPhone sales will not come as a surprise.

“We are proud to report a strong March quarter, with revenue growth accelerating from the December quarter and continued robust demand for iPhone 7 Plus,” said Tim Cook, Apple’s CEO, in a statement sent to MobileSyrup.

“We’ve seen great customer response to both models of the new iPhone 7 (Product)Red Special Edition and we’re thrilled with the strong momentum of our Services business, with our highest revenue ever for a 13-week quarter. Looking ahead, we are excited to welcome attendees from around the world to our annual Worldwide Developers Conference next month in San Jose.”

In terms of the sale of other devices, Apple sold 4.2 million Macs this quarter, a four percent year-on-year increase, spurred by the release of the company’s new line of USB-C MacBook Pro laptops. Despite the controversy surrounding the new Pro, it looks like the new line of laptops have sold well for Apple.

The iPad, Apple’s third product category, however, continues to experience slumping sales, following a trend the tablet has experienced for the last three years. Apple sold 8.9 million iPads this quarter, down from the 10.25 million it sold during the same sold quarter last year.

On the plus side, the company’s service’s business continues to grow at a rapid race, surging 18 percent year-over-year to $7.04 billion.

Finally, Apple’s “Other Products” category, which includes the Apple Watch and the Apple TV, increased by 31 percent, which likely indicates that the Apple Watch continues to sell well for the company.

The most recent rumours point to Apple releasing three versions of the iPhone later this year, a move that will likely spur the smartphone’s sales significantly.