iPhone Sales Surge and iPad Sales Drop for the Second Consecutive Quarter

by Istvan Fekete on July 23, 2014

Apple sold 35.2 million iPhones in the quarter ending June 28, beating Wall Street analyst estimations. The third fiscal quarter usually means low sales, since consumers tend to hold off for the next-generation iDevice, due in just a couple of months.

iPhone sales were up 12.7% compared to the same quarter last year, driven by demand from Brazil, Russia, India and China – collectively known as the BRIC countries – as here iPhone sales rose by 55%.

Since the popular handset accounts for roughly 53% of Apple’s revenue, rising sales meant rising revenue and profit, as well. The company reported $37.4 billion in revenue, up 6%, and $7.75 billion profit, up from $6.69 billion reported during the same period a year ago.

However, what has captured the attention of analysts is the declining sales of iPads, which stand in contrast to iPhone sales for the second consecutive quarter, causing concern among analysts about the iPad’s future. The question is timely, since Apple is gearing up to launching one or two bigger-screen iPhones this fall.

On the other hand, what we could be seeing during the past quarters is that Apple has entered a period of steady growth and efficient earnings, satisfying some of the investors’ and analysts’ “needs”. But after a decade of remarkable growth, this isn’t quite what investors are after: the so-called “flattened earnings” will only be reignited by new product categories.

The rumour mill has already spilled information about a couple of new devices: the iWatch is said to be hitting the market sometime this year, and there have been whispers about an iTV, as well. However, rumours about the iTV are sparse, and the majority of sources seem to agree that Apple has postponed such plans.

For the current quarter Apple is projecting a wide revenue range of $37 billion to $40 billion, below analyst expectations of $40.44 billion.

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Written by: Istvan Fekete. www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube.

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