iPhone 6 demand pushes Apple to record profit & revenue

iPhone 6 sales propel Apple to record profit and revenue

The supersized iPhone 6 Plus has been credited for helping Apple chalk up the largest quarterly profit ever recorded by a company.

Apple made a record quarterly revenue of $74.6 billion during the three months to 27 December, as well as a record quarterly net profit of $18billion.

The results were well ahead of Wall Street's expectations, which predicted a quarterly revenue of around $67.7 billion for the consumer electronics giant had been mooted.

Advertisement - Article continues below

This was on the back of all-time high iPhone sales, of 74.5 million units, which the firm's CEO Tim Cook has described as "staggering".

"This volume is hard to comprehend. On average we sold over 34,000 iPhones every hour, 24 hours a day, every day of the quarter," he said on a conference call to discuss the results, transcribed by Seeking Alpha.

The popularity of the iPhone 6 Plus, in particular, has been cited as key revenue driver for Apple in Q1 by Luca Maestri, the firm's senior vice president and chief financial officer.

"The unprecedented demand for iPhone 6 and 6 Plus combined with our tremendously successful production ramp allowed us to build and ship several million more iPhones that we had expected when we provided guidance back in October," said Maestri.

Advertisement - Article continues below

"iPhone ASPs [average selling prices] were $687, an increase of $50 over the year ago quarter. This led to iPhone revenue growth of 57 per cent year-over-year, with quarterly sales exceeding $50 billion for the first time ever."

Advertisement - Article continues below

Q1 demand for the firm's iPhone devices weren't the only bright spot in Apple's results, as Mac sales were also up 14 per cent, and App Store revenue was also up 41 per cent.

The only dampener on its Q1 proceedings was the downturn in iPad sales, with Apple selling 21.4 million units. This was down from 26 million in the same quarter of the previous year.

This will undoubtedly fuel industry speculation about how sales of larger form smartphones are cannibalising those of tablets.

This sentiment was echoed in a mailout earlier today by Richard Holway, chairman at analyst firm TechMarketView, who said: "It really does look as if the five-year-old iPad has peaked. With the iPhone 6+ almost as big as an iPad Mini, many users question why they need both devices."

Featured Resources

The case for a marketing content hub

Transform your digital marketing to deliver customer expectations

Download now

Fast, flexible and compliant e-signatures for global businesses

Be at the forefront of digital transformation with electronic signatures

Download now

Why CEOS should care about the move to SAP S/4HANA

And how they can accelerate business value

Download now

IT faces new security challenges in the wake of COVID-19

Beat the crisis by learning how to secure your network

Download now


operating systems

Apple’s iOS 14 to include a built-in translator for Safari

5 Jun 2020
Mobile Phones

Apple’s iOS 13.5 update targets coronavirus-related iPhone issues

22 May 2020
Mobile Phones

Apple reportedly delaying iPhone 12 launch until October

21 May 2020
mobile security

FBI and Justice Department accuse Apple of stalling terrorist probe

19 May 2020

Most Popular


Apple confirms serious bugs in iOS 13.5

4 Jun 2020

The UK looks to Japan and South Korea for 5G equipment

4 Jun 2020

Tycoon ransomware discovered using Java image files to target software firms

5 Jun 2020