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.

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.

"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."

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

Humility in AI: Building trustworthy and ethical AI systems

How humble AI can help safeguard your business

Download now

Future of video conferencing

Optimising video conferencing features to achieve business goals

Download now

Leadership compass: Privileged Access Management

Securing privileged accounts in a high-risk environment

Download now

Why you need to include the cloud in your disaster recovery plan

Preserving data for business success

Download now

Recommended

Apple is facing more 'batterygate' lawsuits in Europe
Mobile Phones

Apple is facing more 'batterygate' lawsuits in Europe

3 Dec 2020
Apple unveils updated Mac lineup powered by its new M1 chip
Hardware

Apple unveils updated Mac lineup powered by its new M1 chip

10 Nov 2020
Apple will require developers to add privacy nutrition labels to apps
privacy

Apple will require developers to add privacy nutrition labels to apps

6 Nov 2020
Apple will replace crackling AirPods Pro for free
Hardware

Apple will replace crackling AirPods Pro for free

3 Nov 2020

Most Popular

Samsung Galaxy Note might be discontinued in 2021
Mobile Phones

Samsung Galaxy Note might be discontinued in 2021

1 Dec 2020
Microsoft Teams no longer works on Internet Explorer
Microsoft Office

Microsoft Teams no longer works on Internet Explorer

30 Nov 2020
Sopra Steria cyber attack costs to hit €50 million
Security

Sopra Steria cyber attack costs to hit €50 million

26 Nov 2020