iPhone, Apple Watch and Apple Music: The big Q3 takeaways


Apple reported on its fiscal Q3 2015 earnings today, following the launch of the Apple Watch and Apple Music just a short time ago.

Apple was happy to report on increased revenues and sales, but with all the numbers being thrown around, we've rounded them up for you.

For what its worth

The Cupertino giant reported to investors that it saw revenues up 33%, raking in $49.6 billion in revenue for the quarter, with $10.7 billion in net profit.

This compares to a revenue of $37.4 billion and net profit of $7.7 billion during the same quarter last year.

"We had an amazing quarter, with iPhone revenue up 59% over last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch," said Tim Cook, Apple's CEO.

Apple attributes 64% of the revenue to international sales, as well as an increase to iPhone and Mac sales, while the Apple Watch launch seemingly made an impact as well.

A watchful year

The Apple Watch has only been available for a short while, but Cook revealed there are already 8,500 apps for the wearable available in the App Store.

The tech giant didn't reveal any details about how many Apple Watches it has sold to date, but said it's had a great start, with CFO Luca Maestri claiming that Apple Watch has accounted for more than 100% of growth in the "Other Products" category.

Apple said that demand for the Apple Watch exceeded supply even at the pre-order stage (which had been offered in nine countries to begin with), and the company has only just started to catch up with the demand and will expand availability to more countries soon.

It should be noted that Apple lumps the revenue numbers for Apple Watch under "Other Products," which includes sales numbers for iPod, Beats Electronics, Apple TV and Apple-branded and third-party accessories.

Revenue for these products was up by nearly $952 million from the previous previous, to $2.64 billion, and the Apple Watch made an impact with possible Watch sales amounting to around $1 billion.

Cook also added a few more numbers in regards to the Watch, saying there is currently a 97% customer satisfaction rate and 94% customers wear and use the Apple Watch everyday. Cook said customer satisfaction is an indication for long-term success.

The radio star hasn't been killed

Apple Music seems to be having a rather successful start, with Cook noting that "millions and millions" of people are currently trying out Apple Music through the 3-month free trial.

Of course, this may or may not translate to those same millions and millions signing up to subscription service after the free trial period is over.

Apple also claimed there are currently over 30,000 artists using Apple Music's Connect feature.

The big three

The iPhone still makes up Apple's largest chunk of total revenue at about 70%, and it saw a massive 59% increase from the same period last year, with 47.5 million units sold.

This compares to last year's 35.2 million unit sales for the same period. However, this quarter's sales are notably down from the second quarter, which saw 61.1 million units sold.

Of course, with the iPhone 6S and iOS 9 expected to launch in a few months' time, sales are expected to see a big increase by the end of the year.

This quarter's iPad sales - 10.9 million units sold - also saw a decrease from both the previous quarter (12.6 million units) and last year's third quarter (13.2 million), indicating that Apple's slates may be struggling. Could a new iPad launch later this year see sales swing back?

Macs, on the other hand, had increased sales, though only very slightly. There were 4.79 million units sold this quarter, up from last year's 4.41 million unit sales and last quarters 4.56 million unit sales.

What's next?

While we have already seen the launch of Apple Watch and Apple Music this year, the tech giant still has a lot of things in store in the coming months.

We still expect the iPhone 6S to be launched in September, along with iOS 9. The company also has watchOS 2 in the works as well OS X El Capitan for Mac.

And with "millions and millions" of users to see their free trial period for Apple Music come to an end in three months' time, we'll have to until September to see who actually sticks around for the subscription service.