Tech: Apple's Services shine in Q3 (AAPL)

Apple reported earnings for its fiscal Q3 (that ended July 1) on Tuesday. Overall, the company reported 7% growth YoY to reach $45.4 billion

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Apple reported earnings for its fiscal Q3 (that ended July 1) on Tuesday. Overall, the company reported 7% growth YoY to reach $45.4 billion.

This marks a significant improvement in growth compared with same quarter in the previous year, when revenue declined 15% YoY, and is likely evidence of stabilizing iPhone sales. Global iPhone sales reached 41 million devices in Q3, mostly flat from the same time the year prior.

Meanwhile, Services and Other Products — Apple’s peripheral segments — continue to offer a bright light for the company:

• Apple’s Services narrative is taking shape. Services, which includes revenues from the App Store, AppleCare, Apple Pay, licensing, and other services, showed healthy growth, surpassing $7 billion in revenue for the quarter, up 22% YoY from just under $6 billion the year prior. The segment’s growth continues its upward trajectory, accelerating from 19% YoY growth from the previous year.
• Other Products are gaining traction and helping to supplement iPhone sales. Revenue from Other Products — which includes the Apple TV, Apple Watch, Beats products, the iPod, and Apple-branded and third-party accessories — grew 23% YoY during the quarter, accounting for $2.7 billion, compared with $2.2 billion in Q3 2016.

Apple’s Q3 2017 performance is a promising sign that the foundation the company has been laying over the past two years is finally gaining traction among consumers. With global premium smartphone shipments stagnating, Apple’s ability to generate revenue outside of iPhone sales is critical to its future bottom line. To achieve this, the company is expanding existing platforms such as its app ecosystem, creating the iMessage App Store for mini apps launched within the iMessage interface, as well as pushing further into areas like healthcare through its ancillary products, such as the Apple Watch.

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from pulse.ng - Nigeria's entertainment & lifestyle platform online