Apple Announces Ridiculous Quarterly Profits

Apple Profits

It looks like it’s been yet another strong performance by Apple to get 2015 going, after the company announced the largest ever quarterly profits ever reported this week.

The iPhone manufacturer posted a net profit of a whopping $18bn (£11.8bn) over the most recent financial quarter, beating the previous record of $15.9bn that was held by ExxonMobil.

This is obviously phenomenal news for anyone involved with the company, and continues to prove the company’s dominance of the high-end smartphone market, despite only releasing just a few devices each year.

What’s caused the Apple Profit Surge?

This huge profit is mainly being attributed to the launch of the iPhone 6 and 6 Plus, both of which were sold in ridiculous amounts since their launch back in September.

During the first three months after their release, just under 75 million units were moved, whether it be by contract or sim-free deals, which is another record breaking statistic.

Also, the flow of cash has also been helped by sales around other devices as well, including the likes of the iPad and Mac range.

The iPhone 6 and 6 Plus have keyed this surge in sales

In terms of profit margins, it also spells good news for Apple, as the amount of cash made from each iPhone sale has risen to 39.9% per handset.

Also, what’s also had a humungous impact is Apple’s dominance of the Chinese market, after striking a deal with the country’s largest mobile network to sell its devices in the lucrative market.

Basically, this means that the majority of Apple’s profits have come down to the iPhone, something very few people will be surprised about.

Trouble in Paradise?

One cause for concern for the Cupertino based company is the continuing problems surrounding the iPad, which has struggled to match its original performance since its conception.

Sales during the last quarter dropped by 18% despite the release of two brand new versions of the slate, with the iPad Air 2 and Mini 3 both failing to perform as expected and being the obvious area for improvement from a financial standpoint.

The main cause for this is likely to be that the upgrade cycle for tablets isn’t as fast as it is for smartphones. Users are happy to keep hold of one tablet for several years without upgrading, whilst the average lifespan of a smartphone sits just under two years.

This means that users who have already got an iPad are very unlikely to buy another one unless they happen to lose it or if it sees an untimely demise.

Do you think it's game over for the iPad?

What Next for Apple?

Despite the problems surrounding the iPad, Apple’s shares still rose by 5% after the announcement, but it’s unlikely that the company will be celebrating too much just yet.

In fact, many of the folks over at Apple will be working hard to ensure that its upcoming wearable, the AppleWatch continues the trend of must-have iGadgets.

Depending on how well this new piece of kit does, we may well be seeing even more records broken over the course of 2015…

What are your thoughts on this latest announcement from Apple? Let us know on Facebook, Twitter or Google+.

Written by Luke Hatfield

XS SM MD LG