Apple iPhone Q2 Unit Sales Decline2 May, 2017 By: Erik Gruenwedel
Apple May 2 reported it sold 50.7 million iPhones in the second quarter, ended April 1, generating $33.2 billion in revenue. That represented a surprising 1% decline from 51.1 million units sold during the previous-year period. Revenue increased 1.2%, from $32.8 billion a year ago.
Sales of Apple TV, Apple Watch, Beats, iPod and Apple-branded and third-party accessories increased 32% to $2.8 billion, from $2.1 billion.
Unit sales of iPhones dropped about 35% from the first quarter, when holiday sales for the iPhone 7 soared, sending revenue skyrocketing to $54.3 billion. CEO Tim Cook said consumer demand remains strong.
“We are proud to report … continued robust demand for iPhone 7 Plus,” Cook said in a statement. “We’ve seen great customer response to both models of the new iPhone 7.”
Yet, Wall Street projected iPhone sales exceeding 52 million units, which had CFO Luca Maestri on the defensive. He said unit sales actually exceeded 52 million when factoring “sell-in” figures, which represent units sold to retailers — not consumers.
Regardless, Apple is projected to have strong sales in the fall when it celebrates the 10th anniversary of the iPhone with product enhancements speculated to include wireless charging, curved screen display and 3D facial recognition, among others.
The tech giant saw double-digit revenue growth from Apple Music subscriptions, iCloud storage and in the total number of paid subscriptions for proprietary services and third-party content. Paid subscriptions now exceed 165 million.
Finally, services revenue, which includes digital content such as iTunes, increased 17.5% to $7 billion, from $5.9 billion a year earlier.