iPhone 7 breaks Apple's sales recordsCNET's Shara Tibken explains how the iPhone 7 helped reverse the company's downward sales pattern in its latest quarterly earnings report. But are other Apple products like AirPods and MacBooks performing well?
It's been a record breaking quarter for Apple with earnings coming out for the holiday quarter. Now CNet Senior Writer Shara Tibken has been following the earnings. Now Shara, obviously the iPhone 7 has been a big performer, and it's broken the losing streak that Apple's had for the last three quarters. What does this mean for the company at large? Yeah, so it was really important that the iPhone do well this quarter. They came out with the iPhone 7 in September. It looks a lot like the 6s and the 6. So there were some questions how well it has actually been doing. They have record sales over 78 million iPhones sold. They said that the 7 plus has actually been selling extremely well, which makes a lot of sense because it had all the new camera features. So this is really important for Apple. Most of their revenue comes from the phone. And in terms of the other revenue streams, obviously we've got the new Macbooks that came out with the touch bar, we have Airports and the Apple Watch and iPads Did we get any indication on how those were performing? Yeah, Tim Cook spent a lot of time on the call talking about how it was basically just a record quarter. Macs did extremely well. They don't break out Apple Watch sales but they said it was a record, both in terms of units and in revenue. AirPods, they talked about how they had this strong wearables lineup now. Kind of the only really negative spot was the iPad, which fell for the 12th straight quarter. No matter what they do, the new iPad Pro, adding different features, it just doesn't seem to get people to buy it. And here's the interesting one, services. Now tell me about what this category actually is, and why is it such a big driver for Apple for [UNKNOWN] forward. Services is things like the App Store, Apple Care, Apple Pay, all of these things you do with your phone, basically. For Apple it's a big deal because that's something that is steady. So if you are paying for iCloud, you're paying for it every month. It's not just a one-time purchase like a phone and then you don't buy it again for two years It's only about $7 billion in revenue is what it was this quarter, comparison, the iPhone was over 50 billion. So it's not a huge percentage for them, but it's something that's just growing a ton. And what about the rumors about Apple Before moving into content and television creation, with that for under the services than a tour? Yeah that definitely would, they noted that their hopping to double their services business, over the next four years, that presumably will. Come from new sorts of services, getting people to pay for more things. So along with having an iCloud account, in Apple music they want you to pay for an Apple TV account or whatever it is they have. So that's probably a big factor in how they actually get that business to increase so much. Sarah thank you so much. Make sure to stay tuned to CNET for all the latest on Apple and everything else tech.