Apple’s revenues in the past quarter slightly increased, thanks to a 51 percent rise in iPhone sales in the U.S. market compared to the same period last year, while the company’s profit fell by 22 percent due to a decrease in gross margins.
The world’s largest technology company reported on Tuesday that its profit in the past quarter amounted to $6.9 billion, or $7.47 per share, while in the same period last year, Apple’s profit was $8.8 billion, or $9.32 per share.
The company’s revenues reached $35.3 billion, while in the same quarter last year, they amounted to $35 billion. This is slightly more than analysts expected in a Thomson Reuters survey.
Although the company’s profit fell by 22 percent, it was still higher than analysts’ estimates, who expected a profit of $7.32 per share, leading to a more than 3 percent increase in Apple’s stock price following the earnings announcement. The profit decline is a result of a decrease in gross margin below 37 percent, while in the same quarter last year, it was above 42 percent.
The revenue increase is attributed to a 51 percent rise in iPhone sales in the U.S. market and a 66 percent increase in Japan compared to the same period last year. In total, Apple sold 31.2 million iPhones in the past quarter, significantly more than the expected 26 million, while iPad sales reached 14.6 million.
While Apple’s revenues in the U.S. and Japan rose sharply, revenues from the company’s third key market fell short. The company’s revenues in China dropped by 43 percent compared to the previous quarter, while on a year-over-year basis, they were down 14 percent.
