Bumper iPhone sales send Apple’s profits soaring
Apple’s profits have soared past Wall Street expectations on the back of record iPhone sales.
Quarterly revenue rose nearly 50% to $13.5 billion, crushing Wall Street’s estimate of $12.4 billion. The figure does not include iPad sales, which are expected to add another a further $1 billion to Apple’s bottom line.
The results were primarily driven by sales of the iPhone, which rose 131% on the same period last year, boosted by new markets including China, and new network operators including Vodafone in the UK.
All indications are that Apple’s momentum in the marketplace is continuing to accelerate
“All the upside was driven by iPhones,” said Broadpoint AmTech analyst Brian Marshall. “The international carrier partner program really ramped up this last quarter.”
The success sent Apple’s shares rocketing to an all-time high of $251.14.
However, it wasn’t just the iPhone that performed. Sales of Macs leapt 33% to 2.94 million units, just ahead of analysts’ targets, while the company shifted 10.89 million iPods in the quarter.
“I don’t think investors were braced for the kind of outside beat that we’ve gotten this afternoon,” said Oppenheimer analyst Yair Reiner. “All indications are that Apple’s momentum in the marketplace is continuing to accelerate.”
Apple is betting big on the iPad as the company’s next big breakout product. The device went on sale earlier this month and sold half a million units in the first week.
IPad sales have exceeded Apple’s expectations, Chief Operating Officer Tim Cook said on a conference call with analysts. “We think the market size for the iPad is very large, and we want to capitalise on our first mover advantage,” Cook said.