Huge Apple Profit on Higher iPhone and iPad Sales
Not long ago after iPhone 4 came out, skeptics question about how much appeal the costly device and related wireless service would have in countries like China with lower income levels. Apple On Tuesday gives the answer
Apple Corp reported on that soaring sales of the iPhone,
especially in China, helped Apple nearly double its profit in the company’s fiscal second quarter.Apple said it sold 35.1 million iPhones in the quarter, an 88 percent increase from the period a year ago. It sold 11.8 million iPads, more than double the number it sold in the same quarter last year.
“It was an incredible quarter in China,” Timothy D. Cook, Apple’s chief executive, said in a conference call with Wall Street analysts. “It is mind-boggling that we could do this well.”
in quarter that ended March 31, the company reported net income of $11.62 billion, or $12.30 a share, compared with $5.99 billion, or $6.40 a share, in the period a year earlier.
Apple’s revenue was $39.19 billion, up from $24.67 billion a year ago.
Mr. Cook said that Apple’s quarterly revenue from China was $7.9 billion, about 20 percent of total company revenue. Furthermore, that was triple Apple’s China sales in the same period a year ago. In contrast, Apple’s China sales during its last fiscal year were about 12 percent of total revenue. Two years ago, Apple sales in China were 2 percent.
“China has grown from a rounding error to a massive new market,” said Robert Cihra, an analyst at Evercore Partners. “Their premium price point clearly has not been any hurdle to them growing there.”
Rating: 4.5
Title : Huge Apple Profit on Higher iPhone and iPad Sales
Description : Huge Apple Profit on Higher iPhone and iPad Sales Not long ago after iPhone 4 came out, skeptics question about how much appeal the ...