Apple revenue up 5% though iPhone unit sale drops 1% in March quarter

Apple revenue in Q2 2017

Apple has posted revenue of $52.9 billion (+5 percent), operating income of $14.09 billion and net income of $11.02 billion for its fiscal 2017 second quarter ended April 1, 2017. International sales accounted for 65 percent of the quarter’s revenue.

iPhone sales fell 1 percent. iPhone revenue rose 1 percent.

Apple indicated that it will be facing another difficult quarter.

Apple target for third quarter

# revenue between $43.5 billion and $45.5 billion
# gross margin between 37.5 percent and 38.5 percent
# operating expenses between $6.6 billion and $6.7 billion

“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.

“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,” Tim Cook said in a statement.

Tim Cook, while attending analyst call, did not mention anything about India. Analysts believe that Apple had a tough quarter in India.

Apple said services revenue rose 17.5 percent to $7 billion. Mac PC revenue grew 14.4 percent to $5.8 billion. Mac PC unit shipments rose 4.1 percent to 4.2 million. Services and Mac PC revenue growth in the Americas and EMEA also helped offset most of the impact of revenue decline in Greater China.

“Apple’s iPhone business is experiencing deferred demand as its loyal customers awaits the release of the iPhone 8 later this year, likely in September 2017,” said Jack Narcotta, senior analyst at TBR.

Apple iPhone unit shipments fell 0.8 percent to 50.8 million. But a mix of iPhone 7 Plus models in iPhone mix boosted iPhone ASP, helping lift iPhone revenue by 1.2 percent to $33.2 billion.

While growth in Mac PC and Services reduces the burden on the iPhone as Apple’s revenue engine – the iPhone accounted for 62.9 percent of Apple’s total revenue.

Baburajan K