Apple Makes New Profit Wonders in First Quarter of Fiscal 2015
Apple vanquishes analysts’ predictions about the sales of its iPhones by selling 74.6 million devices in the first quarter of 2015. According to the company’s new financial report, in comparison to 2014, the increment in net profit is upto 38%.
Further the report divulged its earning per share (EPS) at $3.06 and the gross margins which came at $39.9$. For a comparison, analysts forecasted net profit of $15.3 billion on sales of $67.6 billion with $2.57 EPS.
Beside the analysts, company itself seemed too over cautious in predictions as they foresaw $66.5 billion in sales for the last three months of 2014 when they actually made more than $70 billion for their sales setting new record in iPhone sales.
The Cupertino-based company seems out of the reach of economical bad weathers – to be precise of deflation – which has clouded many of the colossal economies of the world as it confirms that the average selling price for the iPhone has gone high by nearly $50 to $687.
Now when Apple has even reprove the most optimistic prophecies about the sales of iPhone (analysts predicted sales between 61 million and 70 million iPhones), it seems turning up its orthodox predictions as its CFO said the company’s sales could have been 4% higher, had not been currency fluctuations in big economies like Japan and Russia.
The company is not hesitant to expect $50 billion and more as net profit in quarter two of 2015.
However, the iPhone maker has become a tycoon dealer for smartphones, analysts and company execs confirm. The credit goes to the iPhone 6 and iPhone 6 Plus for helping Apple in making this huge leap, as they have now been considered as a number 1 smartphone vendor in China after being at fourth place for the last seven quarters.
According to the statistic provided by the company, 65% of its sales came from abroad. And the sales made in China had a major share in it. According to the company sources, sales has been increased by 70% in China and Taiwan.
“We’re incredibly bullish about the iPhone going forward,” Apple CEO Tim Cook said in a conference call to Forbes on Tuesday, adding that the last quarter had seen the largest rate of people switching from Android to Apple’s iOS devices.
Expressing his high expectation, he also revealed company’s plan of shipping its sapphire-coated smartwatch, which is set to debut in April.
Abubaker Zahoor writes on diverse topics with special interest in innovations, tech-ethics, and inter-and intra- organizational business relationships.