Apple Reveals Impressive 3rd Quarter Earnings, Says Apple Watch Sales Staying Strong

Apple is pretty secretive about sales figures, especially with a new category like the Apple Watch, but they are required, as a public company, to update analysts with regular financial calls. On July 21, Apple held a conference call to go over their third-quarter earnings. This was the first earnings report since the Apple Watch became widely available and Apple revealed some interesting news. CEO Tim Cook said "the feedback from Apple Watch customers is incredibly positive and we've been very happy with customer satisfaction and usage statistics." Apple cited the Wristly survey, which iPhone Life covered the other day (and, for full disclosure, which I participated in.) The survey showed 97 percent of Apple Watch owners are satisfied with their purchase. Those numbers are better than the satisfaction rates for the original iPhone or iPad!

Apple Watch sales

Regarding specific Apple Watch sales, Apple did not give out numbers, but they did refute the report that sales were dropping. Cook stated that June sales were higher than in April or May, the only other months when the watch was being sold. That's a far cry from the 90 percent drop that the analytics firm Slice was quoting. Of course Slice's data has been viewed as flawed since it is based on online receipts and the Apple Watch finally went on sale in stores, in June. “As we said in the past, we do not plan to disclose Apple Watch metrics because we don't intend to provide insight that could help our competitors,” Apple CFO Luca Maestri added.

At least one analyst did some back-of-the-envelope calculations and determined the Apple Watch has already added a billion dollars to Apple's bottom line. That is an impressive number and anyone calling the Apple Watch a "flop" has to reconsider. At $400 to $500 per device, that would be 2 million units or more, although add ons like Apple Watch bands and Apple Care+ could be part of that revenue figure. It's clear that Apple's wearable business is almost the size of the rest of the smartwatch industry combined, with watchOS 2 poised to make the Apple Watch even more useful.

An impressive amount of business is coming from China. While one of every six dollars in revenue Apple earned last year came from China, that number is now one in four—a 33 percent increase from last year to $13.2 billion out of $49.6 billion overall. The larger iPhone 6 and 6 Plus have helped Apple increase revenue per iPhone by $100 on average compared to when they sold the four-inch iPhone 5. Of course, all of this good news is rarely enough to satisfy investors, who sent Apple stock down about seven percent.

Master your iPhone in one minute a day: Sign up here to get our FREE Tip of the Day delivered right to your inbox.

Topics

Author Details

Todd Bernhard's picture

Author Details

Todd Bernhard

Todd Bernhard is a bestselling (6+ million downloads) award-winning (AARP, About.com, BestAppEver.com, Digital Hollywood, and Verizon) developer and founder of NoTie.NET, an app developer specializing in Talking Ringtone apps including AutoRingtone. And his profile photo is of the last known sighting of Mr. Bernhard wearing a tie, circa 2007!

An iPhone is almost always attached to his hip or in his pocket, but over the years, Mr. Bernhard has owned an Apple Newton, a Motorola Marco, an HP 95LX, a Compaq iPaq, a Palm Treo, and a Nokia e62. In addition to writing for iPhone Life, Mr. Bernhard has written for its sister publications, PocketPC Magazine and The HP Palmtop Paper.