Apple reports $49.6 billion quarter


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.

iPhone sales shot up 59% over last year with 47 million devices sold, which was an increase of 37%. Apple also said it saw its highest rate of new customers switching from Android.

Apple Mac business is also doing well with 4.8 million Macs sold. Growth was 9%, which outpaced the PC industry.

iPad sales slowed to 10.9 million units or a decline of 18%. iPad sales have been trending downward since peaking in late 2013. I'd guess most people who want an iPad have purchased an iPad and growth may be leveling into upgrade cycles.

Apple didn't disclose specifics on the Apple Watch. Apple maintains that sales of the Apple Watch have outpaced their expectations. Apple did disclose that sales of the Apple Watch out-paced the original iPhone and iPad numbers given the same timeframe.