Saturday, July 20, 2024

Apple’s Profits at an all-time high of £6.9bn

There is no denying that Apple is a giant, but with the iPhone record sales over the past three months, it has become even more so. In fact Apple has reported a staggering £6.9bn profits on revenues of £31.5bn. The Apple iPhone remains a favourite among many customers.

According to statistics for the Apple iPhone, more than 47.5m phones were sold between April and June this year. This is even more interesting considering that generally sales slow down a bit over this quarter, as shoppers await what the company will launch in the autumn. This figure is a surprising 35% increase on iPhone sales over the same period in 2014. It is also more than twice the number of handsets sold in the third quarter of 2011.

Part of this success is being attributed to the fact that Apple offers larger smartphone displays. Moreover, it is worth noting that a quarter of Apple’s overall revenue over these three months actually comes from China. This is a new market that Apple had found it rather difficult to crack previously.

Apple also managed to sell 10.9million iPads over this period. The prospects of the Apple Watch in the meantime remain quite unclear as Apple has not revealed sales figures as yet. The main reason for this is that disclosing such information might prove advantageous to competitors. Despite that the company’s Chief Financial Officer, Luca Maestri, claimed that the watch had beaten internal expectations, since the number sold during the first nine weeks was higher than the sales of the first iPhone and iPad. Back in 2007 1 million iPhone’s were sold over 10 weeks, and 3 million iPad’s in the first 11 weeks. So certainly the Apple Watch is proving to be a success.

The Apple Watch and the market response it is getting is being followed attentively as this is the first major new product introduced by the company since the founder and former Apple CEO Steve Jobs passed away in 2011.

Despite all of these great results, Apple’s stock fell by 7%, leading to a £37bn reduction in its market value. According to market analysts this could be an indication that the company’s sales might eventually slow down a bit in the future. However, Apple is set to benefit from its extensive user base of hundreds of millions of customers. These are quite likely to upgrade their old versions of iPhone’s within the next couple of years.

With regards to the debut of Apple Music, it is worth noting that the company has diversified the music it offers and it has also launched a new radio station.

Apple is certainly doing well, unlike some other large companies in the smartphone sector. Microsoft for instance announced a net loss of £2.1bn. This comes in the wake of a substantial write-down of its value in this line of business, which was acquired from Nokia.

BlackBerry is also not doing quite well as it has recently announced another round of job cuts. The company has also been falling behind as Apple and Samsung became stronger in the market of smartphones. In fact as of February of this year there were only 6,225 full-time employees working for BlackBerry.

Elliot is the Editor at ABCMoney. He manages a team that writes and contributes to many leading publications across a number of industries.

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