Apple Beats Earnings Estimates, Sells 47.5 Million iPhones in Second Quarter

Tech giant Apple (AAPL) reported fiscal third quarter earnings after the closing bell on Tuesday. Earnings per share came in at $1.85, beating estimates of $1.80. As for revenue, sales totaled $49.6 billion, compared to estimates of $49.3 billion. Revenue rose 32.5 percent over the past year. This quarter, it was all about the iPhone. Apple sold 47.5 million iPhones, less than the 61.2 million sold last quarter. 'We had an amazing quarter, with iPhone revenue up 59 percent over last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch,' said Tim Cook, Apple’s CEO. 'The excitement for Apple Music has been incredible, and we’re looking forward to releasing iOS 9, OS X El Capitan and watchOS 2 to customers in the fall.' This earnings report is the first indication on how its Apple Watch performed, which began shipments back on April 24. The company said 'other products,' which includes the Apple Watch, saw revenue of $2.64 billion, a 49 percent jump year-over-year. iPad sales totaled 10.9 million, though revenue slumped 23 percent year-over-year. Revenue guidance for its fourth quarter stood between $49 billion and $51 billion, compared to estimates of $51.1 billion. Shares slumped about 7 percent in after-hours trading on Tuesday. The stock is up about 19 percent since the start of the year. TheStreet's Scott Gamm reports from New York.