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iPhone sales and Apple Services fuel Apple's Q3 2015 revenue

Apple's quarterly financial call announced its quarterly performance today. Apple's Q3 2015 revenue was $49,605 billion (£32 billion) and quarterly net profit was $10.7 billion (£6.8 billion) or $1.85 per diluted share.

This is down from last quarter, likely explained by the Chinese holidays that took palce, but considerably higher than Q3 last year ($37,432B). As noted in the press release, international sales accounted for 64 per cent of the quarter's revenue.

The strength of their quarter was largely due to iPhone sales, which as usual made up the majority of revenue. The growth of iPhone sales was three times what the rest of the market experienced, particularly in Asian markets and exceeded Apple's internal expectations. Tim Cook noted that they experienced an unprecedented rate of customers switching from Android to iOS.

Tim Cook's opening statement focused greatly on Apple Watch's growth as well as its functionality, noting its medical applications. Currently, it's sold in 19 countries, with 3 more to come this year. He also cited a Wristly survey (opens in new tab) with a 97 per cent customer satisfaction rate with the watch. Tim Cook did note that the Watch's sales exceeded expectations and the launch was stronger than many other Apple products, despite only being sold at physical stores. WatchOS 2 is expected later in the year.

Apple's services were performing better than ever, both compared to the previous quarter and Q3 2014. The growth of Apple Pay, expanding to universities and support by American Express, was one factor, as well as the growth of online stores in China. Cook also mentioned the launch of the square reader as providing more opportunities to use Apple Pay.

iPad sales were down from Q3 2014 and last quarter. The announcement focused on its performance against similar products in higher price ranges, where it still had high market share and in the Q&A portion focused on the growth of the tablet market in the enterprise industry.

Later, Tim Cook addressed the volatility of the Chinese market, but believed that growth would continue overall despite temporary setbacks, stressing again the growth of the middle class as an indicator of its eventual success.

Apple's CFO, Luca Maestri, noted that every currency weakened against the dollar with the exception of China's. China currently represents the second largest market for Apple at $13,230 billion ($8.4 billion), under the Americas at $20,209 billion ($12.9 billion).

Apple's press release is available here (opens in new tab) and the replay will be available for two weeks from today.