Apple's Profits Jump on Strong iPhone Sales
Published on: 23rd Jul 2014
Note -- this news article is more than a year old.
Apple has posted a 12 percent rise in its second quarter profits as iPhone sales offset declines in sales of its iPad tablet.
The company said that it sold 35.2 million iPhones during the three months to the end of June, an increase of 13% from the same time in 2013. It was particuarly boosted by sales in China, but also Brazil, Russia, India, South Africa.
However, sales of the iPad tablet continued to decline, down by 9 percent to 13.3 million as that product is hurt by increased competition from both Android tablets, but also Amazon's own range of tablets that are tied to its book store.
Sales are also said to be sluggish in North America and Europe, where the markets appear to be reaching tablet saturation. Unlike smartphones, the upgrade urge in consumers seems to be much lower when a new tablet is released.
Revenue rose 6% to $37.4 billion, while net profit was up by 12% to US$7.75 billion.
In a statement, Apple's CEOe Tim Cook said he was "incredibly excited" about new operating systems for iPhones and computers as well as "new products and services that we can't wait to introduce".
Apple's new iOS is due to go on general release later this year, at the same time as a new iPhone is expected to be announced.
Expectation of a new iPhone handset usually holds back sales in the third quarter as people are slightly more willing to wait an few months before replacing their existing phone.