Apple Posts Strong iPhone Sales, But iPad Numbers Drop

Apple set a new record for iPhone sales in its fiscal third quarter, though iPad sales experienced a slump. The company reported that 35.2 million iPhones were sold during the three month period, beating out the third quarter record of 31.2 million set last year. However, iPad sales were not so good and fell 9% year-over-year to 13.3 million.

CEO Tim Cook attributed the drop in iPad sales to soft international markets and inventory reduction. He also pointed out that the tablet did well in developing markets such as China and the drop off was in developed countries. Going forward, Cook believes Apple’s recent partnership with IBM will help expand iPad penetration into the enterprise space.

Apple is also set to release its next version of the iPhone in the coming quarter. Two models of the iPhone 6 are expected to be introduced, allowing customers to choose between screen sizes of 4.7 and 5.5 inches. As with past launches, the new smartphones will give Apple a nice boost for the fourth and following quarters.

Financially, Apple posted revenue of $37.4 billion and earnings per share of $1.28. Revenue was below analyst estimates, but EPS came out ahead of projections. For the fourth quarter ending in September, Apple expects revenue to come in between $37 billion and $40 billion. That forecast is lower than the $40.4 billion that analysts are projecting, due to, among other things, the company’s purchase of Beats, which is expected to close next quarter.

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