When Apple reported its fiscal third-quarter earnings results on Tuesday, investors were in for a pleasant surprise… The fiscal Q3 conference call offered a wealth of additional information for Apple shareholders, but these three tantalizing morsels in particular provide helpful hints to about what lies ahead for the company.
• The sky isn’t falling in China: Several things appeared to contribute to the improving the results in China. Apple made a series of pricing adjustments over the past several months and at the same time Chinese officials instituted government stimulus in the form of a reduction in the value added tax. This combination of factors appear to have had the desired effect.
• It’s not just about the iPhone any more: For the first time in years, sales of the iPhone accounted for less than half of Apple’s revenue.
• Wearables continues its rock-solid growth: Cook said it was an “absolutely blow out quarter for wearables,” noting several important benchmarks. Growth in the segment accelerated to “well over 50%.” This was led by the Apple Watch, which set a June quarter revenue record, with 75% of customers buying the device for the first time.
MacDailyNews Take: YKBAWID.
Apple transition from iPhone dependence to iPhone independence (diversification) is in full swing now!