Apple has released its fourth quarter sales stats today, revealing that while sales for its iPhones and iPads were on the rise, profits have fallen to an eleven year low.
iPhone sales increased dramatically in the three month period in question to a massive 33.8 million, marking a 26% rise on last year.
Despite this surge in sales, Apple’s net profit dipped to $37bn (£) for the fiscal year, the first time the company’s earnings have declined in 11 years.
Apple’s CEO, Tim Cook, demonstrated confidence for the future, however, stating that “business was stronger than ever". It is expected that next year’s profits will overcome this year’s dip, and could see figures in the region of $55-$59bn.
Analysts have suggested that the disappointing profit figures might be due to the higher manufacturing cost of Apple’s latest iPads and Mac computers. As a result, the profit margin on these products isn’t allowing the company to make as much revenue as anticipated.
This year was the first time that Apple released more than one iPhone at once, and the iPhone 5s and 5c were expected to shake things up for the company.
Despite reports of slow iPhone 5c sales, Apple announced that it sold 9 million devices in the first weekend that the two iPhones went on sale.
Apple also revealed its latest additions to the iPad range last week. The iPad Air is Apple’s lightest iPad to date, while the new iPad Mini is the first iPad Mini to feature a full retina display.
With the new iPhones and iPads hitting the market just in time for Christmas, it will be interesting to see how the upcoming festive season will affect Apple’s overall profits.