Apple Sees iPad Revenue Growth for the First Time in 10 Quarters

Apple today announced a year-over-year drop in revenue for the second quarter in a row based on flagging iPhone sales, but amid the decline, Apple saw its iPad revenue grow slightly for the first time in 10 quarters. Apple's iPad line brought in $4.9 billion in Q3 2016, up from $4.5 billion in the year-ago quarter.

In an interview with The Wall Street Journal, Cook said he was "encouraged" by the iPad's revenue growth and the 19 percent growth in the services category, which includes Apple Music, the App Store, iTunes, and more.

"There are a number of encouraging signs in the results," Mr. Cook told The Wall Street Journal. "This last quarter was surprising because it was better than we expected from so many different points of view, not just one thing."

While iPad revenue was up based on the higher average selling price of the 9.7 and 12.9-inch iPad Pro models, overall unit sales continued to decline. Apple sold almost 10 million iPads during the third quarter of 2016, compared to almost 11 million during the third quarter of 2015.

Apple's 9.7-inch iPad Pro starts at $599, while the 12.9-inch iPad Pro starts at $799, two price points that are much higher than the $499 price Apple's previous iPad models started at.