Robust sales of the iPhone and an all-time record activity at the App Store propelled Apple's revenue in Q2 for fiscal 2015 with revenue hitting $58 billion and net profit of $13.6 billion resulting in a $2.33 per diluted share.
That's a big healthy jump compared to a year ago same quarter when revenue was $45.6 billion, a net profit of $10.2 billion, which accounted for a $1.66 per diluted share.
"We are thrilled by the continued strength of iPhone, Mac and the App Store, which drove our best March quarter results ever," stated Tim Cook, Apple's CEO, in an Apple announcement regarding earnings. He's as enthused about the upcoming quarter given Apple's Watch debut this month and attributed the Q2 results to a higher rate of smartphone consumers moving onto the iPhone platform than in previous product cycles.
According to the release the big growth with the iPhone, App Store activity and sales of the Mac PCs resulted in the 27 percent revenue growth and the 33 percent net income growth.
Apple sold 61.1 million iPhones during the quarter, a year ago same quarter the iPhone sales were 43.7 million. That figure well beat analysts' expectations, which was 55 million devices.
The very healthy earnings report shouldn't change much going forward, says Gartner analyst Van Baker, even with increasing competition from smartphone players such as Samsung.
"The new [Samsung] Galaxy phones have gotten great reviews," Baker stated. "Could Apple see a challenge from a more aggressive Samsung? That's certainly possible. I think they'll sell as many iPhones as they can build, and the same goes for the Watch. They'll sell every one."
Baker says the next quarter's results, given the Watch debut, is anyone's guess and that its true earnings impact won't provide a clear view until 2016. That's when it'll be clear if the Watch fever hitting now will remain sustainable.
"Is the Watch a 20 million unit market or a 200 million market?" Baker said. "No one knows yet."
One of the few less rosy earnings figure was related to the iPad, with a 23 percent dip in sales compared to a year ago same quarter. In Q2 Apple sold 12.6 million iPads, well below what analysts expected, which was 15 million.