Apple has reported its latest quarterly earnings, for the second quarter of its 2017 fiscal year (Q2 2017). The company announced revenue of $52.9 billion, up from $50.6 billion during the same quarter a year ago, an increase of around 4.5%. Its net income rose to $11.03 billion, rising from $10.52 billion year-over-year (YoY).
It was a bit of a mixed bag for Apple's hardware range, with iPhone sales declining by around 1%, with 50.8 million units sold, compared with 51.2 million last year. iPad sales fell from 10.3 million to 8.92 million last quarter, a drop of around 13%; but there was a modest YoY increase in Mac sales which rose from 4 million to 4.2 million.
However, Apple Watch sales almost doubled YoY, and Apple's Tim Cook said that its wearable device sales - which includes not just Watches, but also its range of headphones - were the 'size of a Fortune 500 company' over the last twelve months, putting its annual revenue from those accessories at more than $5.1 billion. However, it's certainly interesting that Apple insisted on presenting that information in such a vague, abstract way, rather than simply dishing out some real numbers to tell the story of how successful its wearable devices really are.
Apple had no qualms about boasting of the success of its services business with some actual numbers to back it up, though. Its services revenue - which comes from products such as the App Store, iTunes, iCloud storage, and Apple Music subscriptions - rose by around 18% YoY to $7.04 billion, and now accounts for 13.3% of Apple's total revenue.
Apple expects to generate between $43.5 billion and $45.5 billion during its next fiscal quarter.