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Inside Scoop - Apple iPhone sales fall below expectations

2015-07-21
hi and welcome to inside scoop I'm Alexis avedis joined by sheraton kim senior writer for cnet.com now sure we're talking apples third-quarter earnings traditionally the weakest quarter has this been the case this time around yeah it was another weak quarter for Apple which was actually kind of surprising people had really expected the iphone momentum to keep going but we actually found that they didn't sell quite as many iphone since analysts expected i mean this isn't saying it was a horrible quarter it was actually you know pretty strong quarter they sold you know 47 million iphones but analysts were expecting 49 and what did Tim Cook say on the coal did we get any inside into other parts of the performance from Apple this quarter Tim Cook is always very optimistic always saying everything's great everything's wonderful so when it came to the iphone he said you know everything is great people are still buying them but the issue for Apple is we're coming up against some really hard comparisons the iphone 6 is the biggest device that they've ever sold you know both by the screen size and fordham and millions and millions of people have been buying this so the problem is what can they do with the iphone 6s that really gets people to buy the iphone again and not just you know hold on to their older device and going from screen sizes to the smaller screen size on the wrist which was the watch which is obviously a big part of the earnings this quarter what sort of insight do we get into how Apple watch performs we didn't get much insight at all Apple said that they weren't going to break out Apple watch sales and they didn't it falls into the other products category which now also is ipod beats accessories that increased about nine hundred million dollars 9 52 million actually sequentially in from the second quarter which didn't have the Apple watch you can't just assume that that means they made 952 million dollars from the Apple watch but they said all of their growth in that category came from the watch so things like iPods accessories those are still dropping a lot beats probably also had a weak quarter but we don't know because they don't break it out Apple did say that the watch is doing better than the iphone and ipad when they first started selling them but both of those devices were just available in the u.s. at first whereas the Apple watch was available in nine countries so not really sure if it's quite a fair comparison but Apple is still very optimistic great well thank you sharra and of course if you want to catch up on the rest of apples earnings you can check out our full coverage on cnet com
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