SAN FRANCISCO—Apple’s latest financial report shows iPhone sales are still surging, driven partly by growth in China. But it also contains hints that Apple’s much-vaunted smartwatch may not be selling as fast as Wall Street expected.
The California tech giant sold more than 47.5 million iPhones during the three months ending in June, or 35 percent more than a year ago. That sent Apple’s profit soaring nearly 38 percent for the quarter, to $10.7 billion.
But a lukewarm forecast for the current period, combined with uncertainty over the new Apple Watch, helped drive Apple shares down more than 6 percent in late trading Tuesday night.
While the iPhone is the engine of Apple’s current success, many analysts and investors see the sleek new smartwatch as an important indicator of the company’s ability to produce new products. CEO Tim Cook said Tuesday that watch sales outpaced initial sales of the iPhone and iPad during the first nine weeks after their launch.
