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Apple Sees Solid YoY iPhone Sales Growth in Fiscal 3Q15

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Aug. 17 2015, Updated 9:06 a.m. ET

iPhone sales in fiscal 3Q15

In the previous part of the series, we learned about the robust revenue growth of Apple (AAPL) in fiscal 3Q15. The company’s revenue grew by ~32.5% year-over-year (or YoY) to ~$49.6 billion during the quarter. We also learned about the geographic segments that drove this growth.

In this article, we will look at the key product and the growth driver of the company. The iPhone is the biggest contributor to Apple’s revenue, representing ~63.2% of the total at the end of fiscal 3Q15. Apple’s iPhone sales grew at ~58.8% YoY to $31.4 billion during the quarter.

Solid unit sales growth coupled with expansion in ASP (average selling price) led to the significant YoY increase in iPhone sales in this June quarter.

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Volume of iPhone sales in fiscal 3Q15

Apple sold ~47.5 million iPhones during fiscal 3Q15. These unit iPhone sales grew by ~35% YoY. According to the company, the channel inventory of iPhones also decreased by ~600,000 units in fiscal 3Q15.

The solid growth rate in iPhone’s unit sales is significant considering the smartphone industry’s growth during the period. According to the International Data Corporation, global smartphone shipments grew by ~11.6% YoY during the quarter. Also, the market leader, Samsung (SSNLF), witnessed a YoY contraction in unit smartphone sales. Plus, Lenovo’s (LNVGY) smartphone shipments, excluding Motorola, grew marginally by ~2.4% YoY during the same period.

Expansion in average selling price of iPhones

The ASP of the iPhone also increased 17.6% YoY to ~$660 during fiscal 3Q15. According to Apple, the increasing proportion of iPhone 6 and iPhone 6 Plus in the unit sales positively affected the YoY ASP expansion during the quarter. The stronger dollar depressed iPhone’s YoY ASP expansion by ~$24. iPhone’s ASP expanded by ~$99 YoY in fiscal 3Q15.

You can get diversified exposure to Apple by investing in the PowerShares QQQ ETF (QQQ). The ETF held ~13.3% in the company on July 31, 2015.

Alternatively, you can consider investing in the Technology Select Sector SPDR Fund (XLK). The ETF held ~16.9% in the company on the same date.

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