Apple posts Q3 revenue of $42.4 billion and quarterly net income of $7.8 billion

Apple held its third quarter earnings call and reported revenue of $42.4 billion and quarterly net income of $7.8 billion, or $1.42 per diluted share. These results compare to revenue of $49.6 billion and net income of $10.7 billion, or $1.85 per diluted share, in the year-ago quarter.  A 15 per cent decline. Gross margin was 38 percent compared to 39.7 percent in the year-ago quarter. International sales accounted for 63 percent of the quarter’s revenue.

Apple's big earner was its services with the App Store growing in sales by 19 per cent, reflecting an all-time record. The shrinkage is expected to continue, despite a lot of anticipation for the upcoming iPhone refresh, the company projects its fourth-quarter sales between $45.5 billion and $47.5 billion, compared with $51.5 billion this period last year.