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Apple Posts $13.6bn Q2 Profits, Record App Store Revenues

Alex Spencer

Apple Logo TrimmedApple has reported profits of $13.6bn (£8.9bn) for Q2 2015, up 33 per cent year-on-year, and revenues of $58bn, up 27 per cent year-on-year.

The majority of those revenues (69 per cent, £40.3bn) came from iPhone sales. Apple sold 61.2m iPhones during the quarter, up 40 per cent year-on-year, compared to 12.6m iPads, down 23 per cent. As these results cover the three-month period to 28 March, there is no indication of how well the Apple Watch has sold.

“It’s been really great to see the reaction of customers since their watches began arriving on Friday morning,” said Apple CEO Tim Cook, on the Q2 earnings call. “All around the world, we’ve seen the excitement on social networks as people start using their Apple Watch. The response has been overwhelmingly positive.”

When pushed about Apple's supply problems, Cook admitted: “Right now, demand is greater than supply, and so we’re working hard to remedy that. We’ve made progress over the last week or so, and we were able to deliver more customers an Apple Watch over the weekend than we had initially anticipated.”

It is worth noting that this number is still only a fifth of the Watch orders Apple has received, according to Slice Intelligence data, but Apple remains optimistic about a wider global launch 'sometime in late June'.

Although specific revenue figures weren't released, Apple also reported that the App Store had its best-ever quarter, with revenues up 29 per cent year-on-year. This contributed to a record $5bn in total services revenues – a figure that also includes iTunes, iBooks and Apple Pay.

Overall, it was a strong quarter for Apple, though it couldn't quite compete with its record-breaking Q1 performance – understandable, as that quarter included the Christmas shopping period. Compared to last quarter, revenues were down 22 per cent, profits down 24.4 per cent, and iPhone sales down 18 per cent.