Press release from Apple – http://www.apple.com/pr/library/2015/07/21Apple-Reports-Record-Third-Quarter-Results.html
CUPERTINO, California — July 21, 2015 — Apple® today announced financial results for its fiscal 2015 third quarter ended June 27, 2015. The Company posted quarterly revenue of $49.6 billion and quarterly net profit of $10.7 billion, or $1.85 per diluted share. These results compare to revenue of $37.4 billion and net profit of $7.7 billion, or $1.28 per diluted share, in the year-ago quarter. Gross margin was 39.7 percent compared to 39.4 percent in the year-ago quarter. International sales accounted for 64 percent of the quarter’s revenue.
The growth was fueled by record third quarter sales of iPhone® and Mac®, all-time record revenue from services and the successful launch of Apple Watch™.
“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 Tim Cook, Apple’s CEO. “The excitement for Apple Music has been incredible, and we’re looking forward to releasing iOS 9, OS X El Capitan and watchOS 2 to customers in the fall.”
“In the third quarter our year-over-year growth rate accelerated from the first half of fiscal 2015, with revenue up 33 percent and earnings per share up 45 percent,” said Luca Maestri, Apple’s CFO. “We generated very strong operating cash flow of $15 billion, and we returned over $13 billion to shareholders through our capital return program.”
Apple is providing the following guidance for its fiscal 2015 fourth quarter:
-revenue between $49 billion and $51 billion
-gross margin between 38.5 percent and 39.5 percent
-operating expenses between $5.85 billion and $5.95 billion
-other income/(expense) of $400 million
-tax rate of 26.3 percent
Viewpoint – Apple’s results derive mainly from iPhone sales and China. Apple missed Wall Street estimates by posting earnings of $1.85 per share, and as a consequence market share price is currently down 8%. China alone represented nearly 27% of the revenue in Q3. Apple said they would have 40 stores in China by mid 2016. iPad sales continued to drop. Mac sales have increased slightly, by 9% year on year. Maybe the iPad is at the end of its huge growth period now. Maybe a brand new version will spur growth. Tim Cook refused to reveal any Apple Watch figures which seems bizarre. Apple want to keep the numbers private so competitors are not aware of the sales figures. Not sure I buy that answer. However, I do agree with Tim Cook that the Apple Watch could be a big Xmas filler. However, it does account for 100% growth in the Other Category ($1bn) and offsets the decline in iPod sales and accessories. With a figure of $1bn I imagine Apple have sold between 1.8m to 2m watches. Personally, the future is bright for Apple. With Apple Pay, Apple Music and all the connected products, it is still a bonanza day and future for the company.
Gavin's Gadgets & Photography 
So Apple is primarily a single product company, still.
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