Apple’s second quarter earnings are out, and one thing is abundantly clear: Apple is a phone company first and foremost.
Apple sold 61.2 million iPhones last quarter, up a staggering 40% year-over-year and accounting for nearly 70% of the company’s total Q2 revenue. iPhone sales are down from the last quarter when Apple sold a record 74.5 million of them, but that figure got a big boost from excitement over new models (The iPhone 6 and iPhone 6 Plus) and the holiday shopping season, factors that didn’t apply come Q2.
The iPhone’s stellar Q2 numbers couldn’t come at a better time for Apple. The company has just begun shipping the Apple Watch wearable device, its first new product under CEO Tim Cook. While Apple has an impressive habit of dominating dormant categories just by entering them, it still isn’t clear if the Apple Watch will be a mainstream hit. These massive iPhone sales provide plenty of cover for Apple should the Apple Watch prove a flop.
There’s no official word yet on how Apple’s new Apple Watch wearable device is selling. One unofficial estimate says Apple sold 1.7 million of the devices in a presale period.
Another bright spot for Apple last quarter were sales of Mac computers. Apple sold 4.6 million desktops and laptops last quarter, thanks in part to new models. Apple recently refreshed the MacBook Air, the 13-inch MacBook Pro and introduced a bold new design for the mid-level MacBook laptop. It also introduced a retina 5K version of the iMac desktop late last year.
All that iPhone and Mac success is helping Apple deal with sagging sales for its iPad tablet. Apple sold only 12.6 million iPads last quarter, down 40% year-over-year. Tablet sales have been slowing universally as it becomes apparent consumers aren’t upgrading their devices as frequently as they buy new smartphones. However, Apple and other tablet makers are looking towards enterprise clients as a promising path for growth down the road.