Apple posted revenue of $45.4 billion (+7 percent) supported by 3 percent increase in iPhone sales and 2 percent growth in services in its fiscal 2017 third quarter ended July 1, 2017.
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International sales accounted for 61 percent of the quarter’s revenue.
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ABI Research said China has been a highlight in iPhone sales for Apple over the past couple of years as 4G LTE became available from mobile network operators. However, Apple has warned in previous earnings calls that the China market growth has slowed and pent-up demand has been satisfied.
“Like other markets that were early to adopt LTE connectivity, purchasing has shifted from first-time buyers to replacement and upgrade opportunities. Only India remains as the last large, underserved market where Apple does not have a top 3 vendor market share,” Jeff Orr, research director at ABI Research.
Strategy Analytics, in its research report, said that Apple grew 1 percent annually and shipped 41 million smartphones for 11 percent share worldwide in Q2 2017, down from 12 percent a year ago.
“Apple’s iPhone has gone out of fashion in China and this is placing a cap on its global performance. Attention will now turn to Apple’s iPhone 8 introduction and whether its tenth-anniversary flagship model will be different or exciting enough to ignite a rebound in iPhone volumes for the important Q4 2017 Western holiday season,” said Neil Mawston, executive director at Strategy Analytics.
“With revenue up 7 percent year-over-year, we’re happy to report our third consecutive quarter of accelerating growth and an all-time quarterly record for Services revenue,” said Tim Cook, Apple’s CEO.
