apple-store-china

Apple announced its financial results for its fiscal third quarter of 2015 this afternoon, and the numbers are solid. The company sold 47.5 million iPhones and earned $49.6 billion in revenue, breaking June quarter records and beating Wall Street expectations.

We just finished up the conference call, where Tim Cook and other executives discussed Apple’s performance over the three-month period, and offered up some insights into its future. And as usual, we’ve rounded up the 15 most interesting points from the call below.

  • Apple now has $202.8 billion in cash, 89% of the total is offshore
  • On iPhone: “Experienced highest switcher rate from Android that we’ve ever measured.”
  • iPhone has highest customer satisfaction rate of any smartphone brand by a wide margin
  • Among iPhone owners planning to purchase a new phone, 86% plan to purchase a new iPhone
  • 97% customer satisfaction rate on iPad Air 2,  iPad accounts for 76% of the $200+ tablet market
  • On Apple Watch: 97% customer satisfaction rate, 94% of owners wear and use it every day
  • “Services” category earned $5 billion in revenue, setting a new all-time record
  • App Store produced best quarter ever with revenue growing 24%
  • There are now more than 8500 third party Apple Pay/Siri apps
  • On Apple Music: “Millions and millions” of customers are already experiencing the new service
  • “Millions” are tuning into Beats 1
  • 15,000 artists have signed up for Connect
  • 700 universities and colleges are soon going to be adapting Apple Pay
  • Apple now has 456 retail stores, 190 outside the US
  • Apple plans to have 40 stores open in Greater China by middle of next year

Despite the solid quarter, shares of APPL dipped 7% in after-hours trading due to a small miss on iPhone sales and weaker-than-expected forecast for Q4. The dubiousness shouldn’t last long, however, as Apple is expected to introduce a wave of new products in the fall.

If you want to listen to today’s earnings call, a replay will be available for a limited time.

  • DevXav

    Wow, those numbers are huge..

    Specially considering the “few ammount of products” offered by Apple, when compared to Shamesungs vastly wide product distribution…

    Disruptive innovation is really a big deal (iPhone 1 Release), the only problem is to maintain it.
    Apple seems to be doing it just fine for now..

  • Froo

    8500 Apple Pay and Siri apps?
    I thought it was Watch apps.

  • johnsm

    Apple’s profit grew a third compared to last year… A third of something huge is huge

  • PJ

    Those are some solid numbers. I was really interested in a specific number on Apple Music users. “Millions and millions” isn’t telling.

    • Jason Baroni

      Me too. At least we know it’s more than 2 millions.

  • Jake Platt

    “Apple now has $202.8 billion in cash, 89% of the total is offshore”

    Yep, with tax evasion of this magnitude it’s no wonder why their profits are growing so rapidly. I can only imagine how much tax they are dodging in America, but as an Australian I’ll give you an example of how badly they are rorting the system here. Australian Financial Review’s analysis showed in 2014 that while Australians have bought $27 billion worth of Apple products since 2002, the company has paid only $193 million to the Australian Tax Office (ATO) – just 0.7 per cent of its turnover. Income derived from companies operating in Australia is supposed to be taxed at a flat rate of 30%, yet Apple seem to keep finding ways to divert funds and pay less than 1% tax. Even individuals working a second job here are taxed the best part of 25% of their income. The rich just get richer in the western world.

    To make it clear, I blame the government as well for not enforcing the law stronger. However Apple has a large part to play and I think it is an absolute disgrace that they are allowed/elect to break the law in such a way.

    • Rowan09

      The rich will continue to be rich and find loopholes. If they were just simply breaking the laws a lawsuit will soon follow.

    • johnsm

      You sound like you like to give money to the government

      • Jake Platt

        Then you completely misinterpreted my point. My point was if individuals have to pay substantial tax, why should a multi billion dollar company be able to get away with paying less than 1%

    • omakad

      Jake don’t be bitter, companies have been using legal loopholes to dodge taxes for years. This is what those laws are made for, for rich to get richer. Get rich and join the party. Besides who do you think would pay for the difference if your country didn’t allow for these kind of loop holes? Check out the prices of iPhone in Russia and Brazil. Thy inforce higher tax brackets for off shore companies. Long story short even if they were paying higher taxes they would still be rich cause they sell millions of devices per quarter. Legal tax evasions is just good business. That would be like you going out of your way to spend more money on your business even though you know you could get it for less. This is 100% governments doing. And I’m sure they had a good reason for it. The reason: someone else is making money off of it.

  • Jason Baroni

    “Apple isn’t the same without Steve Jobs”. They are a actually right. Apple has never been better.

  • That_Fruitarian

    Interesting no mention of Cook’s comment on Apple watch sales. Cook said the watch peaked in June despite reports that it had fallen off a cliff. He said the month of June bested April and May….

    • Gary LE

      Forgot where i read it (maybe at idb or imore) but he indicated that they dont want their competitor to know about the sales figures along with their apple tv.