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How Apple Had a Decent Third Quarter for a Change

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Apple’s iPad shipments increased

As we mentioned in the previous part of this series, Apple (AAPL) revenues and earnings topped the estimates. The company had a decent fiscal 3Q17, which is typically its worst quarter of the year.

Apple’s iPad tablet unit sales came in at 11.4 million in fiscal 3Q17, which is a 15.0% rise from iPad shipments in the same quarter last year. As the graph below shows, the last time the technology giant recorded a YoY (year-over-year) rise in iPad shipments was in fiscal 1Q14 during the holiday season in 2013, when the company sold an all-time high of 26.0 million iPads globally.

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Mac and iPad sales helped Apple strike a balance

However, iPad sales have fallen over the years as larger smartphones grew more popular. Apple has slashed its average iPad price from ~$670 in 2010 to the current ~$435. That explains why iPad revenues rose only 2.0% YoY, while unit sales rose 15.0% YoY in the last quarter. Revenues from iPad stood at ~$5.0 billion.

Meanwhile, Mac sales rose 6.7% YoY to 4.3 million. That represents the third consecutive quarter of gains. Mac sales have been growing despite a downturn in computer sales globally. The iPad’s revival and Mac’s momentum in 3Q17 have helped bring some sort of balance to the company’s results. Apple has been increasingly reliant on iPhone sales in the last few years.

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