Apple's fiscal third-quarter revenue came in higher than analysts had expected, despite a decline in iPhone, iPad and Mac sales in the three-month period.
The company reported revenue of $42.4bn for the quarter and profit of $7.8bn. This topped industry expectations and Apple's own forecasts, but is a fall on the $48bn revenue and $10.7bn profit reported this time last year.
Apple sold 40.4 million iPhones during the quarter, beating analyst expectations of 40 million, but marking a decline of 15 per cent on the 48 million sold in Q3 2015.
The iPhone's average selling price fell to $595 from $642, probably owing to sales of the less expensive iPhone SE.
It isn't all bad news for Apple. Chief executive Tim Cook said during an earnings call that people switching from rival operating systems (i.e. Android) is at an "all-time high".
Apple iPad revenue returned to growth, which the company credited to the popularity of the iPad Pro, but sales of the device came in at 9.9 million, down nine per cent compared with 10.9 million this time last year.
Mac sales were also down. The firm shifted 4.2 million units during the three-month period, a slump of 11 per cent compared with 4.7 million in 2015.
Apple once again declined to give Apple Watch sales figures, but a 16 per cent drop in the firm's 'other products' revenue suggests that sales of the smartwatch are slowing down.
Indeed, the smartwatch isn't exactly flying off the shelves, according to analyst firm IDC, which said earlier this week that Apple shifted 1.6 million units in the three months ending in June, down 55 per cent compared with 3.5 million in the same quarter in 2015.
Hardware sales were down across the board, but Apple's Services division saw a 19 per cent year-on-year increase, and App Store revenue reached an all-time high.
Cook said in a statement: "We are pleased to report third-quarter results that reflect stronger customer demand and business performance than we anticipated at the start of the quarter.
"We had a very successful launch of the iPhone SE and we’re thrilled by customers’ and developers' responses to software and services previewed at WWDC in June."
Apple anticipates a rise in revenue to $45.5bn to $47.5bn for the firm's fourth quarter owing largely to the upcoming iPhone 7, which is expected to go on sale in early September.
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