Apple Inc. (NASDAQ:AAPL) may have experienced subpar iPhone sales in the recent quarter but the company says that there is a lot of potential growth for the iPhone.
Advertisement
iPhone and its operating system are an existential threat to Android, in other words. “The iPhone 6 has a 4.7” display and it’s almost as large as the GS5.
This is good news for Apple and not simply because more people are purchasing iPhones.
The problem is that estimates had been creeping up based on bullishness for iPhone and Apple Watch sales.
Despite the continued growth of the iPhone, and the fact that it’s clearly starting to appeal more and more to Android fans, the company’s stock took a tumble immediately after the earnings were reported. And in other markets, it’s encouraging current customers to stick with the iPhone when they upgrade, Cook explained on the call. That sent Apple’s profit soaring almost 38 per cent for the quarter, to $10.7 billion.
iPhone sales during Apple’s most recent quarter skyrocketed 35% year over year, an impressive figure attributable, in part, to a record number of Android switchers opting to see what life is like within the confines of the iOS ecosystem.
Tim Cook stated in a Wall Street Journal’s interview that the gap between Apple and its competitors is widening.
“The highest switcher rate” ever is significant – three months ago he said the same thing.
Advertisement
Apple posted another round of record results late last night, with its revenues jumping to just shy of $50bn.
