Apple’s Q3 Report Shows The Dismal Performance of Apple Watch and Rise in China

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Apple’s Q3 Report Shows The Dismal Performance of Apple Watch and Rise in China

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If the latest fiscal report by Apple indicates anything, it is that the company owes its success to iPhones and Macbooks. Apple has posted its third quarterly results for 2015 and the company has performed better than last quarter, but apparently it wasn’t enough for the investors. The company’s share dropped down by 7%, around $60 billion in market value. Still, Apple has generated $49.6 billion in revenue and earned a profit of $10.7 billion, still behind its record of $18 billion that it set during the first quarter of this year.

Apple Watch isn’t the success that people had predicted it would be. Analysts estimated Apple to sell around 4 million units of the watch. The company did not specify how many units were sold, but according to Apple’s Chief Financial Officer, the Apple Watch generated around $1 billion in revenue for the company. The company has combined the sales figures of Apple Watch, Beats products and others, which the company says has generated around $2.64 billions. CEO Tim Cook said that “sales of the watch did exceed (our) own forecasts”, which means that not only Apple Watch but Apple’s acquisition of Beats by Dre has also paid off and will continue to do so in the near future.

The company’s latest report also mentions that for the second straight quarter, China is now the second largest market for Apple. Recently, the company has been trying to make products to suit Chinese customers, going as far as keeping the colour scheme of iPhone 5C according to Chinese preferences. While the sales in China are low from the last quarter, it is still the second largest base after the United States of America.

It will be interesting to see how the company performs in the next quarter, with the launch of the next iPhone and when Apple Music finally starts taking subscriptions.

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Tejan Mitra