Tim Cook Hints at Apple's Wearable Revenues and They are Huge

Elizabeth Williams
May 7, 2017

Apple chief executive officer (CEO) Tim Cook had on Tuesday reiterated that his company looked at India as a huge opportunity and that is why it was putting "so much energy" there.

In 2016, smartphone sales declined for the first time in the first quarter, an unprecedented move attributed to an increase in market maturity in places like China, which had seen astronomical growth up until that point. Is Cook concerned by these numbers?

"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 spite of a drop in iPhone sales, Apple's sales were 4.6% higher. "We continue to strengthen our local presence across the entire ecosystem, and we're very optimistic about our future in this remarkable country with its very large, young, and tech-savvy population, fast-growing economy, and improving 4G network infrastructure", Cook said in the second quarter results earnings call yesterday.

Apple reported a 4.6 per cent rise in revenue across the whole company to $52.9 billion, slightly below analysts' forecasts.

While Apple is still a hardware company at heart, the services narrative has become an increasingly popular one for the company.

Meanwhile, the year 2017 marks the iPhone's 10th anniversary and the Cupertino, California-based smartphone maker is expected to unveil three new models to commemorate- two handsets with improvements and a third redesigned "premium" iPhone. "By doing that, we can be the ripple in the pond". However, despite selling fewer units, Apple was able to rake in more revenue from its flagship smartphones, with the average selling price reported to be $655 compared to only $642 in the year-ago quarter. Unlike Samsung, Apple has been slow to switch to OLED displays, which are more power efficient and produce a wider colour gamut and dynamic range compared to traditional LCD panels.

Cook also added that Apple would announce initiatives to support its current employees and add to their ranks, and to aid the software developers who make apps for Apple's phones, watches and computers. Analysts had estimated iPhone sales of 52.27 million, according to financial data and analytics firm FactSet, but Apple managed to sell "only" 50.8 million units. Revenue by product line comes out to: iPhone, $33.25B (up 1%); Mac, $5.84B (up 14%); iPad, $3.9B (down 12%); Services revenue $7.04B (up 18%).

Other reports by VgToday

Discuss This Article