Beating predictions and skepticism over whether or not Apple could maintain iPhone sales, the California-based tech giant breaks its own sales records with its popular smart phone line. 51 million iPhones sold in the last quarter alone, which is over 3 million more than their previous record.
Furthermore, Apple continued its win streak in the tablet market. Another record breaker, over 3 million more iPads were sold. This brought their iPad sales to a stunning 26 million.
Apple was also able to push out over half a million more Mac computers than their previous year’s top quarter. In total, 4.8 million were sold in that period.
All of these sales increases helped the company rake in 13.1 billion dollars of profit and a whopping 57.6 billion dollars of revenue. For some perspective, that number is higher than the GDP of Croatia.
However, it is not all good news for Apple as they fell short of the expectations of market analysts. Even as the iPhone breaks its own sales records alongside a variety of other Apple products, the company as a whole has fallen short of the targets set by Wall Street. Apple has had its profits grow by about 7% which is meek in comparison to growth in other years.
Although the iPhone sold more than ever before, Apple was expected to profit off of 4 million more iPhones than they actually sold. Some analysts assume that the company’s bid to sell the iPhone 5c was a failed overcharge and that it was a much more minor factor in relation to growth than other iPhone hardware updates have been.
Profit margins were lower than expectation for a number of reasons as well. A stronger US dollar hindered overall profit and iPods are falling to the wayside in sales. This may be attributed partially to the fact that iPhones can complete the same functions and more.
These things led to a sellout on Wall Street, with Apple shares drooping by 8.2% in after-hours trading. Analysts have noted that in the battle for having the top-selling smart phone, the iPhone may be losing steam. With competitors such as Samsung challenging Apple, the iPhone would need to keep up its strong growth to remain as competitive as it has been.
On top of this, the iPhone is a high-end and expensive phone that simply is not as affordable as other platforms. With other smart phone and regular cell phone companies benefiting from open season in the low-cost field, it becomes even more important for Apple to maintain their growth and dominance.
Several ideas have been flirted with by investors and analysts as to how Apple can continue to reign supreme in the realm of phone sales. Some have suggested that releasing a less pricey iPhone might be the magic touch that is needed. Others have theorized that returning to the visual basics of metal and glass phones might be a better alternative tactic to their experiment with colorful plastic as seen in the iPhone 5c.
At any rate, Apple today is still selling iPhones, and they are selling a lot of them. To be reporting 7% growth as a weak year just goes to show the strength of the company as a whole. Apple’s winning brand continues to win despite the proverbial slap on the hand that Wall Street administers from time to time. As Apple breaks its own sales records yet again, it becomes hard to judge the company or its iPhone too harshly, despite all of its expectations.
By Brett Byers-Lane