Apple today reported double-digit increases in sales and profit for its fiscal third quarter. Although, the earnings results didn’t blow past some Wall Street expectations.
Apple reported a 38 percent increase in profit, to $10.7 billion, from a year ago. Revenue overall has grown 33 percent to $49.6 billion. Sales of the iPhone, the company’s biggest revenue and profit generator, soared 35 percent to 47.5 million units.
Despite solid quarterly results, the street saw Apple shares tumbling, which lends credence to the expectations quandary that the company’s success has created.
The 47.5 million units sold in the quarter was below the roughly 50 million that analysts had calculated Apple would sell, and was also down from the 40 percent growth in the previous quarter and the 46 percent growth two quarters earlier.
Apple failed to announce the amount of Apple Watches sold since April. Though, analysts calculated that the company had sold between 1.5 million and three million watches, far less than the three million to five million watches they had predicted ahead of Apple’s earnings report.
“We had an amazing quarter, with iPhone revenue up 59 percent 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 Apple CEO, Tim Cook.