Apple’s earnings over Christmas rose by 38% year-on-year, helping Apple set a new record for the biggest quarterly profit ever made at $18bn (£11.8bn). Watch this video from The Daily Telegraph looking into the reasons behind Apple’s record breaking profit: The technology giant’s financial performance was driven by a new range of larger iPhones, with […]
Apple’s earnings over Christmas rose by 38% year-on-year, helping Apple set a new record for the biggest quarterly profit ever made at $18bn (£11.8bn).
Watch this video from The Daily Telegraph looking into the reasons behind Apple’s record breaking profit:
The technology giant’s financial performance was driven by a new range of larger iPhones, with 74.5 million handsets sold between October and December.
Analysts now estimate the company is leading the smartphone market in China, despite its products costing double those of domestic rivals.
Its net profit far exceeds the previous record-holder, ExxonMobil, who reported earnings of $15.9bn (£10.5bn) during the second quarter of 2012.
By contrast rival Samsung has forecast a 37.4% fall in quarterly operating profit from a year earlier, forecasting an operating profit of 5.2tn Korean won ($4.74bn; £3.14bn) for the three months to December.
Experts had predicted that Apple’s total revenues would be $53.6bn (£35bn) for the quarter – but Apple’s CEO Tim Cook says this was closer to $74.6bn (£49bn).
According to technology analysts, it took Apple a long time to get to grips with the fact that the public wanted larger screens – causing their market share to plummet.
However, iPad sales were down 22% in the last quarter, and there are warnings that growth in the smartphone sector is beginning to slow.
The iPhone accounts for two-thirds of Apple’s revenue and China sales rose 70% on the year, thanks to the larger screens of the iPhone 6 and iPhone 6 Plus.
Although the California-based firm is planning to launch a smartwatch in March, it remains unclear whether the device will be a big hit with customers.
Other companies have been disappointed with demand for similar offerings, amid concerns that the battery life is insufficient for a whole day’s use.
Apple is currently the world’s most valuable company, with a market capitalisation of $651bn (£428bn).
