Apple's Services shine in Q3 (AAPL)

pulse

August 2, 2017 8:21 PM

Apple reported earnings for its fiscal Q3 (that ended July 1) on Tuesday. Overall, the company reported 7% growth YoY to reach $45.4 billion

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Apple reportedearningsfor its fiscal Q3 (that ended). Overall, the company reported 7% growth YoY to reach $45.4 billion.

This marks a significant improvement in growth compared with same quarter in the previous year, when revenue declined 15% YoY, and is likely evidence of stabilizing iPhone sales. Global iPhone sales reached 41 million devices in Q3, mostly flat from the same time the year prior.

Meanwhile, Services and Other Products — Apple’s peripheral segments — continue to offer a bright light for the company:

Apple’s Services narrative is taking shape.
Other Products are gaining traction and helping to supplement iPhone sales.

Apple’s Q3 2017 performance is a promising sign that the foundation the company has been laying over the past two years is finally gaining traction among consumers. With global premium smartphone shipments stagnating, Apple’s ability to generate revenue outside of iPhone sales is critical to its future bottom line. To achieve this, the company is expanding existing platforms such as its app ecosystem, creating the iMessage App Store for mini apps launched within the iMessage interface, as well as pushing further into areas like healthcare through its ancillary products, such as the Apple Watch.

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