Analysts were right! Apple Inc.’s (NASDAQ:AAPL) latest quarter results have made it the biggest quarter yet – that is right! Apple made history with its first quarterly results for its fiscal year. Apple’s share value spiked up by 5% in the afterhours trading following the earnings report.
With a net profit of $18 billion, Apple broke all records; the tech giant surpassed ExxonMobile’s 2012 record of $15.9 billion for its second quarter.
So what was different this year?
The bigger screen!
Even though Apple entered the bigger screen market fairly late as compared to its competitors, but it seems that it made the right decision at the right time. Experts and analysts thought that Apple may just have been a little too late in entering this domain, but the iPhone manufacturer proved everyone wrong by launching its most successful iPhone yet, iPhone 6 . The bigger screened iPhone 6 and iPhone 6 plus were the main reason for these record breaking profit figures.
Just within three months of its first fiscal quarter, Apple was able to sell 74.5 million units of iPhone 6, beating analysts’ expectation by miles – according to estimates this figure was less than 70 million units for the quarter; the interesting point is that these figures were achieved after the company had failed to meet the demand for iPhone 6 Plus – supply was short whereas the demand was high. Revenue for the company went up to $74.6 billion as compared to last year’s $57.6 billion. Apple now has a total cash amount of $178 billion in its pocket.
As far as the iPad sales go, Apple had to face disappointment yet again; the tech giant’s tablet sales continue to go downhill. iPad sales took a dip by 22% as compared to last year’s sales figures. Apple is trying its best to have a second star product along with iPhone to help boost revenues for the company; however, for the time being, it seems iPad cannot be that product.
One of the biggest achievements for Apple in its last quarter was the fact that the company became the biggest smartphone selling brand in China, a country where local brands have an extremely strong footing and enjoy the largest chunk of the market share. Apple had to face a lot of delays for launching its iPhone 6 in the region; however from the quarterly results it looks that for Apple it was definitely worth the wait.
iPhone’s success in China is going to create a huge wave of competition; every brand will now try its best to make the most of the second most populous country in the world. It won’t be wrong to say that China may just become the ideal destination for the tech industry.
Despite the most successful quarter yet, Apple Inc. (NASDAQ:AAPL) has something to think about. The company has only one start product, which brings in almost all the profit, which means Apple does not have a “backup” in case iPhone fails to produce the results; however at this point an iPhone failure seems highly unlikely.
