Apple has posted Q3 18 results, and the results won't be a disappointment to investors, with the Cupertino powerhouse squeezing another good quarter out of the iPhone, and gets a decent one out of the iPad. But Mac sales hit a low not seen in years.
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Let's start with the iPhone. Unit sales of 41.3 million fall pretty in line with Wall Street expectations (the consensus was around 41.6), but while units are up year-on-year only 1 percent, revenue over the same period is up 20 percent.
This has driven up the Average Selling Price to $724, beating the expected ASP of $699. The ASP is, however, down slightly on the previous quarter ASP of $728, but up on the year-ago quarter ASP figure of $606.
It is important to bear in mind that Q3 is the weakest quarter for the iPhone.
Moving to the iPad, and while unit sales increased 1 percent to 11.55 million year-on-year, revenue dropped 5 percent. This also dragged the ASP down to $410, from $451 for the previous quarter, and also down on the figure of $434 the year-ago quarter.
People are buying cheaper iPads, perhaps because the steam has run out of iPad Pro sales given that they are all now over a year old.
Things are pretty dire for Mac sales, which have slumped to a seven-year-low of 3.72 million. ASP is virtually unchanged from the previous quarter (sitting at $1,432 compared to $1,434), and is actually up from the ASP of $1,303 for the year-ago quarter.
This dramatic unit sales drop will, however, renew the narrative that Apple has taken its eye off the Mac and that sales have suffered dramatically as a result.
Apple's revenue from "Other Products," which include AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch and other Apple-branded and third-party accessories, hit $3.74 billion, down 5 percent from the $3.95 billion from the previous quarter, but up 37 percent from the year-ago quarter figure of $2.73 billion.
This growth fell into the range expected by analysts.