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      Economy

      Apple reports soaring revenue in China

      1
      2015-07-22 09:37China Daily Editor: Si Huan

      Apple Inc reported third-quarter earnings on Tuesday that edged analysts' expectations, with revenue in greater China reaching$13.2 billion, an increase of 112 percent year-over-year, and the sale of iPhones climbing 85 percent.

      Apple CEO Tim Cook said that the growth in greater China was "outstanding" - the Mac App Store revenue more than doubled in China. The Cupertino, California-based company said it intends to open 40 stores in China by the middle of next year.

      Apple reported net income of $10.7 billion, or $1.85 a share for the period ended June 27 on revenue of $49.6 billion. According to Bloomberg, analysts on average were looking for third-quarter profit of $1.81 a share and revenue of $49.4 billion. In the year-ago quarter, Apple had net income of $7.7 billion, or $1.28 a share on revenue of $37.4 billion.

      But Apple's iPhone shipments for the quarter and the company's revenue forecast for the fourth quarter were below analysts' projections.

      Apple sold 47.5 million iPhones, a 35 percent gain, which accounted for 63 percent of the company's revenue in the quarter. Analysts had anticipated 48.8 million.

      Apple didn't report sales of the Apple Watch, which was introduced in April. Analysts predicted on average 3.4 million sales of the Watch with an average selling price of $499, according to the Bloomberg survey. In a category called "Other," it included results for the smartwatch, along with items such as Beats headphones and iPod sales. Revenue in the category rose 49 percent to $2.64 billion, the company said.

      The company forecast revenue of $49 billion to $51 billion in its fiscal fourth quarter, which ends in September, short of the average estimate for $51.1 billion, according to data compiled by Bloomberg.

      Overall revenue increased 33 percent from a year earlier, and China revenue represented 27 percent of Apple's total, down a bit from the prior quarter. International sales accounted for 64 percent of the quarter's revenue.

      Apple's gross margin improved to 39.7 percent from 39.4 percent in the year-ago quarter.

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