iPhone 6 And App Store Sales Drive Record Apple Results

Apple has recorded its best ever second quarter results thanks to a 40 percent increase in iPhone sales and the best ever performance from the App Store, although iPad sales fell by almost a quarter during the period.

Revenues increased by 27 percent to $58 billion (£38bn) while the company made a profit of $13.6 billion (£8.9bn), up from $10.2 billion (£6.7bn), year on year with the iPhone again providing the bulk of the income.

“We are thrilled by the continued strength of iPhone, Mac and the App Store, which drove our best March quarter results ever,” said Tim Cook, Apple’s CEO. “We’re seeing a higher rate of people switching to iPhone than we’ve experienced in previous cycles, and we’re off to an exciting start to the June quarter with the launch of Apple Watch.”

Record Apple results

iPhone revenue increased by 55 percent to $40.28 billion (£26.44bn), while Mac sales remained relatively static and generated $5.52 billion (£3.62bn). iPad revenue slumped by 29 percent to $5.42 billion (£3.6bn), but services income, which includes sales from iTunes, App Store, Mac App Store, Apple Pay and licensing, rose by nine percent to $5 billion.

The US remains Apple’s largest market and accounts for $21.316 billion (£14bn), but revenue from China jumped from $9.84 billion (£6.46bn) last year to $16.82 billion (£11.04bn) – more than the $12.2 billion (£8.011bn) earned from Europe.

“Apple’s forays into emerging markets have begun to bear fruit as iPhone sales in China are surpassing those in the US plus international sales account for 69 per cent of total sales in the most recent quarter,” said Loizos Heracleous, professor of strategy at Warwick Business School.

“The decline in iPad sales is more than made up for by higher iPhone sales, and the introduction of the Apple Watch represents significant potential for the company. Apple’s plans to return $200 billion to shareholders through share buybacks and dividends represents a departure from previous company policy and is another plus for investors.”

The company predicts revenue will fall to between $46 and 48 billion (£30.2 – £31.52bn) during the third quarter despite the aforementioned launch of the Apple Watch last week. More than one million pre-orders for the smartwatch are reported to have been placed online, but supply is believed to be limited and devices will not appear in Apple’s retail stores for some time.

What do you know about the iPhone 6, iPhone 6 Plus and Apple Watch? Try our quiz!

Steve McCaskill

Steve McCaskill is editor of TechWeekEurope and ChannelBiz. He joined as a reporter in 2011 and covers all areas of IT, with a particular interest in telecommunications, mobile and networking, along with sports technology.

Recent Posts

Regulator Demands Answers Over Tesla FSD Social Media Posts

US regulator says Tesla's messaging on social media could lead drivers to believe 'Full Self-Driving'…

3 hours ago

US Takes Chip Equipment Makers To Task Over China Sales

US lawmakers write to biggest chip equpment makers in US, Japan, Netherlands asking for data…

4 hours ago

Nvidia Market Value Surges Above $3.6tn

Investor optimism following Donald Trump re-election win pushes Nvidia to record high, adds 30 percent…

4 hours ago

ASML IT Outage Disrupts Worldwide Operations

Dutch chip equipment maker ASML says 'fully recovered' from IT outage affecting operations worldwide and…

5 hours ago

Judge Dismisses Personal Claims Against Meta’s Zuckerberg

US federal judge finds Meta chief excutive Zuckerberg can't be held personally liable in child-addiction…

5 hours ago

China’s SMIC Benefits From AI Chip Boom In Spite Of Sanctions

Chinese chip manufacturing giant SMIC says AI has helped boost revenues to record levels in…

6 hours ago