The data is in and iPhone sales are earning Apple big profits for the second quarter and further. The fiscal second quarter shows a major increase in Apple profits, due to the overwhelming new market in greater China. With a rise of 71 percent in this quarter, compared to this quarter last year, Apple is enjoying their earnings. As the company made a deal with China Mobile near the end of 2013, China consumers have been purchasing iPhones in spades. As Apple waits to see how long this trend will continue, they may continue to see higher earnings over the next couple of quarters, making this year a big year for the company.
Though specific numbers have not yet been released in regards to performance and revenue, Apple has shared the fact that they saw a major increase in profits during this year’s second quarter. With a rise of $16.8 billion, compared to last year, China’s sales have given Apple a large increase in percentage for the fiscal quarter. The total rise has been 27 percent in revenue, compared to last year, already, and Apple still has another half of a year to earn more profits before counting out their yearly revenue. Greater China, which consists of mainland China, Hong Kong, and Taiwan, have made more iPhone sales in the most recent quarter than did the U.S. and Europe. This is the first time that a country has surpassed sales in the U.S.
It is no surprise that Apple representatives have spoken of the company’s continuing interest to invest in the China market. As their deal in 2013 struck gold for them, after they reached an agreement with China Mobile for selling iPhones, the company’s long time effort to create higher sales by exploiting the market in China has finally paid off, literally. Sources state that larger screens are very popular in China and other Asian countries, and with the iPhone 6 and 6 Plus hosting bigger screens, the item was automatically popular in the country. Their success is a major milestone for them, especially as it has so far proven that Apple sales in China beats Microsoft, Amazon, and many other companies, for the quarter.
Of course a major part of the success can be contributed to the fact that the Chinese New Year was in February, and this holiday is one that majorly boosts sales. But overall, the company sold 61.2 million iPhones in the second quarter, between China and other markets. Estimations showed that Apple was expecting to sell 60 million iPhones, but they exceeded that goal by selling an additional 1.2 million iPhones. Their numbers also exceeded the 43.7 million iPhones that Apple sold during the second quarter of 2013.
Though Apple’s iPhone sales earned big for the second quarter, many of their other products did not do as well. The Apple iPad had a decline for the fifth quarter in a row, with only 12.6 million sold. The company has chalked it up to the fact that consumers do not replace their tablets as often as they do their phones. But earnings of Apple’s Mac computers are also up by roughly 500,000 from last year’s second quarter. Apple could also see a large growth later this year due to their recent release of Apple Watch. The product has already gained a raise of 33 percent or $13.6 billion, according to sources.
Though the official report has not been released yet, Apple’s second quarter report will show that the iPhone sales earned big profits for the company. Apple expects that profits will continue to rise, along with the cost of shares, as Apple gains profits on newly released products. Though Apple was apparently more excited about sales from their smart watch, iPhone has given them a new reason to rejoice. Apple is sure to see a good year as consumers continue to invest in their products.
By Crystal Boulware