Apple has released its quarterly earning report, revealing iPhone unit sales for the quarter fell 15 per cent from last year to 40.4 million, and fiscal third-quarter revenue fell 15 per cent to $42.4 billion.
iPhone sales did lift from an expected 39.9 million, and Apple can thank the new SE model for that.
The SE is a little different from Apple's other iPhone offerings -- you could call it "low end", but what it really represents is affordability. It's an iPhone without the iPhone price tag. And according to Bloomberg, Apple wasn't able to fill demand.
iPhone makes up almost two-thirds of Apple's sales, and the decline has seen the company invest in boosting sales from services -- iCloud storage, the App store and Apple music, for example.
"Our Services business grew 19 per cent year-over-year and App Store revenue was the highest ever, as our installed base continued to grow and transacting customers hit an all-time record," said Luca Maestri, Apple's CFO. "We returned over $13 billion to investors through share repurchases and dividends, and we have now completed almost $177 billion of our $250 billion capital return program."
As a result of both the services growth and the SE sales, Apple's earnings -- while still well below last year's -- are far better than expected, and shares jumped by 5.3 per cent after the report (it has fallen 8.2 per cent this year).