Apple continues to rake in billions every quarter. The company just reported its fiscal third quarter, with revenue of $37.4 billion, up $2.1 billion or 6% year-over-year.
What jilted Wall Street is that Apple’s record breaking results are due in part to strong sales of Mac computers, not iPads.
Blockbuster Mac Sales
Apple sold 4.4 million Macs, compared to under 3.8 million in the year ago quarter, an increase of 18% year-over-year and a new June quarter record.
The increase was driven by portables, thanks to very strong growth of MacBook Air—which had its price lowered to a starting price of $899 from $999 USD, late April. This comes in a desktop market that’s shrinking by 2% according to the latest estimate from IDC.
iPad Sales Slump
Apple sold 15.3 million iPads, compared to 14.6 million in the June quarter last year, though analysts had expected a stronger number.
The company said in its conference call with analysts that sales were hurt in part, by “a reduction in channel inventory and in part by market softness in certain parts of the world” namely, the United States.
It cited estimates from IDC which indicated a 5% overall decline in the U.S. tablet market, as well as a decline in Western Europe.
Moving forward, Apple said its partnership with IBM, will a “catalyst for future iPad growth.”
iPhone Still Going Strong
Despite buzz surrounding new iPhone 6, in the pipeline, Apple sold a record breaking 35.2 million handsets, an increase of 4 million over last year, representing 13% growth.