Apple reports have shown that Apple revenue was not derived mainly from iPhone anymore, so what is the new pathway for the US-based company?

Apple reports: are they still drop dead gorgeous?

Apple reports for third quarter of 2016 have been released and it is good news to all Apple lovers that they have done better than the second quarter. The numbers are much higher than expectations. For your interest, the Q2 results were not good, which may make Apple’s investors want to think again about their investment decisions. However, luckily the Q3 revenue has reported to increase and give stability to Apple’s business.

Now, let’s have a look at such Apple reports. First, the quarterly revenue is at $42.4 billion, down from $49.6 billion in Q3 2015. Nett income in the present quarter is $7.8 billion, reduced from $10.7 billion in Q3 2015. Gross margin of operations is at 38 percent, against 39.7 percent last year. It was a drop from its performance last year but fortunately,  the introduction of a larger screen iPhone saved Apple with much better performance than expectations after weak results in Q2 2016.

So what is happening recently? CFO of Apple said that Apple’s Services business had grown 19 percent annually and Appstore accounted for the highest part. He also pointed out that they had returned  $13 billion to investors through share re-purchases and dividends. As what we heard, people have spent more money on Appstore, which led Apple generate Apple’s stock by 7 percent to compensate what it had lost lately.

Apple reports: overall background of Apple’s business

Apple might be surprised since iPhone 6s sales were not as what they had expected. iPad sales have also fallen on overall terms, but the iPad Pro seems to be a promising sign in Apple’s falling hardware sales numbers. Mac sales have also declined, and so have other devices like the Apple Watch. So let’s see what Apple will target to in the future?