Apple, with their new iPhone and Mac products, achieves one of the rarest feats in any market, earning more market shares while simultaneously offering their products at much higher prices, basically rolling in the big bucks. iPhones alone have raked in 40 percent more revenue than they did this time last year. In China, the raise in the number of sales was a whopping 72 percent. When a company sells more than 60 million of a single product, numbers are bound to increase.
In 2014, the average price for an iPhone was close to $600. Now, the price has shot up by nearly 10 percent of 2014’s total. Tim Cook, the Chief Executive of Apple told The Wall Street Journal that the company’s new iPhones have been turning heads away from their competitors.
In the time since the new iPhones were put on the market, Apple’s revenue saw an increase of nearly $30 billion. On Monday, Apple reported that their revenue, which was recorded to have 40.8 percent profitability, was above their predicted amount of 39.5 percent. With all this success at their doorstep, Apple has reaffirmed for their shareholders that they will be returning a total of $200 billion by March of 2017.
The tech company’s plan to pay back their shareholders began in 2012. Since that program launched, Apple has made good on their promise, delivering a total of $112 billion. Also since 2012, the company’s cash flow swelled by over $70 billion.
The majority of Apple’s quarterly achievement stems from their business in China. Combining all the sale centers in China, especially in Taiwan and Hong Kong, the nation took Europe’s place as Apple’s second most profitable region. The hike in the Chinese market was due to the celebration of the Lunar New Year, a time when consumerism spikes.
Unlike the iPhone, iPads have suffered around the globe, save for the markets Apple has in China and Japan, according to Luca Maestri, Apple’s CFO. The new iPhones with the larger LED screens, along with lighter laptops with tablet configurations have torn away 23 percent of the iPad’s previous sales record.
International Data Corp has been tracking the sales of laptops of both Mac and PC models, and Mac computers have been garnering more favor from their rival’s customers. Sales for Macintosh laptops rose 10 percent, but PCs dropped 7 percent in sales.
The only Apple product exempt from any blame or praise this quarter are their new Apple Watches, which just began to ship out this past Friday. As it currently stands, based off of news posted to the company’s website, the Apple Watch orders won’t reach their intended destinations until June. Maestri has taken that into account and will attribute a lower profit margin to Apple Watch.
While both Mac computers and iPhones have improved Apple’s global reputation, the new iPhone design is the company’s golden child. It brought with it a 33 percent profit increase and a net income valuing over $13 billion. The amount the company earned per share rose close to an entire dollar amount, from$1.66 per share to $2.33.
A poll that was taken by Thomson Reuters said that Apple’s quarter would end with a share value of $2.16. With success not anticipated by Apple, or the analysts that keep track of their numbers, Apple has truly achieved a rare accomplishment. If the new iPhones can keep up their momentum, Apple could have their shareholders paid back sooner than they believe.
By Matthew Austin Bowers
Photo by Kārlis Dambrāns – Creativecommons Flickr License