Apple’s revenue in fiscal 3Q15
In the last part of this series, we learned about the solid year-over-year (or YoY) growth that Apple (AAPL) saw in fiscal 3Q15. Moreover, Apple’s revenue grew robustly by ~32.5% YoY to ~$49.6 billion during the quarter. Apple’s revenue growth was even higher than what the management had anticipated. Earlier, Apple had given revenue guidance of between $46 billion and $48 billion for the quarter. However, Apple’s revenue in the quarter was only ~0.5% higher than the Wall Street consensus estimate.
As we can see in the above chart, Apple’s revenues have been higher than Wall Street’s expectations in the last four quarters. However, the revenue surprise was most significant in fiscal 1Q15. The quarter followed the launch of iPhone 6 and iPhone 6 Plus in September 2014.
Greater China drives substantial growth in Apple’s revenue in fiscal 3Q15
Americas, comprising South and North America, remained the dominant revenue stream contributing ~40.7% of Apple’s revenue in fiscal 3Q15. Apple’s revenue from the Americas segment grew by ~15% YoY to ~$20.2 billion during the quarter.
According to a report by comScore, Apple had a dominant 44.1% share in the US smartphone market in the June quarter. It was followed by Samsung (SSNLF) with a 28.1% share. The third and fourth largest players were LG (LGEAF) and Motorola.
Apple’s sales from its Europe segment, which also includes India and the Middle East and North Africa regions, increased by ~19.4% YoY to ~$10.3 billion. However, the robust YoY performance from Greater China (FXI) (EWT) drove Apple’s revenue during the quarter.
The Greater China segment includes the Hong Kong, Taiwan, and China markets. The segment’s revenue grew robustly by ~112.4% YoY to ~$13.2 billion. Among the segments, the revenue growth of the Japan (EWJ) segment was the lowest at ~9.3% YoY during the quarter.