Apple's iPad sales still shrinking, as other segments grow
SAN FRANCISCO (AP) — Apple makes most of its money from the iPhone, but the California tech giant also disclosed results for other product segments Tuesday. Here's a breakdown:
Apple sold more than 47.5 million iPhones during the three months ending in June, or 35 percent more phones than it sold in the same period a year earlier.
That's down from a holiday peak of 74.5 million units sold during the three months that ended in December. The June quarter is traditionally a slower period for Apple, as many shoppers opt to wait for new smartphone models expected in the fall.
Sales of the iPhone contributed $31.4 billion, or more than half the company's $49.6 billion in total revenue for the quarter.
Sales of Apple's tablet devices have been declining for more than a year. Many users are turning to smartphones with larger screens, while others say they can be more productive on a laptop or desktop PC.
Apple sold 10.9 million iPads in the last quarter, down 18 percent from a year earlier. Sales of iPads contributed $4.5 billion in revenue.
The company is promising its next software upgrade will make iPads more useful, by adding such features as the ability to run two apps and view them at the same time, in split-screen.
While the PC industry is still struggling with sagging demand, Apple once again reported an uptick in sales of its Macintosh computers.
Apple said it sold 4.8 million Macs in the quarter, or 9 percent more than a year ago. They contributed $6 billion in revenue.
The growth in Mac sales was driven by new versions of the company's MacBook laptops, according to CEO Tim Cook, although he did not provide details on desktop sales.
WATCH, iPOD AND OTHER PRODUCTS
Apple no longer discloses sales of iPods, which have been shrinking as more people listen to music on their smartphones instead. Apple also has declined to reveal details about sales of its new Apple Watch.
Instead, the company lumps those products, along with Beats headphones, Apple TV and other accessories, into a category called "Other Products," for which it provides only a total revenue figure.
Apple reported $2.6 billion in revenue from other products, up 49 percent from a year ago, when the watch was not yet on sale. But the company says the watch contributed a larger amount of revenue, while iPods and other accessories saw further declines.
Apple reported $5 billion revenue from sales of digital music, apps and e-books, as well as services like AppleCare, Apple Pay and other sources. That's up 12 percent from a year ago.
While digital music and apps are lucrative, industry analysts say they don't expect Apple to make significant profit from services like Apple Pay and the new streaming Music service launched this summer. Instead, they say those are designed to give consumers more reasons to use Apple devices like the iPhone — and to buy new ones.