After a bumpy start to 2014, Apple’s stock finished the year up 40%, adding almost $200 billion to the company’s market value.
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In regard to the Apple Watch, “sales were likely around 1.2 million assuming a $550 ASP”.
Some analysts noted that Apple reported $2.6 billion in revenue from the company’s “Other Products” segment, which includes the watch.
Apple attributed the strong showing to record-breaking sales of iPhones and Macs, along with strong revenue from services and the successful launch of Apple Watch. Now, there is speculation that Apple might have sold around 2 million Watches in the June quarter. CEO Tim Cook said Tuesday that watch sales outpaced initial sales of the iPhone and iPad during the first nine weeks after their launch.
Revenue for the three month period that ended during June were 33% higher to just over $49.6 billion, which was just above forecasts by analysts, with earnings rising 45% to reach $1.85 per share, the ninth straight quarter the company has exceeded Wall Street estimates. Apple also said it sold 22% fewer iPads than it did in the same quarter of last year, in line with an industry-wide trend of declining tablet sales.
In previous articles, we stated that Apple heavily depends on its iPhone lineup with around 70% of the revenue coming from this product. IPhone sales comprised 70 percent of total sales in the March quarter this year, representing a greater proportion of revenue than same period a year before, when it made up 57 percent. Sales of iPods and accessories were down in the most recent quarter, he noted, so Apple Watch sales were actually greater than $1 billion. This indicates that more consumers are buying Apple’s high-end iPhone 6 and 6 Plus.
Going back to the iPad, Apple is rumored to be launching a larger, so-called Pro model in the fall. These results compare to revenue of $37.4 billion and net profit of $7.7 billion, or $1.28 per diluted share, in the same quarter a year ago.
Shares in British computer chip designer ARM Holdings – which supplies Apple – slipped by nearly 4 per cent following the Apple results, amid concerns that the smartphone market may be weakening.
In introductory remarks during Apple’s quarterly earnings call, Cook said the company is “thrilled about the response” to Apple Music, the new streaming service that launched in over 100 countries on June 30. The mid-point of that range is below the average analyst estimate of $50.8 billion.
Apple is shooting for a $50bn (£32bn) quarter to close out its fiscal year.
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If Canalys has the right numbers, that figure would surpass smartwatches and fitness trackers by companies like Fitbit and Xiaomi, Canalys said. “But Apple is an outlier in many metrics, so you need to look at the performance relative to expectations”, he said. In legal news, Google, along with other Silicon Valley tech giants, including Facebook, HP, and eBay, are supporting Samsung in its patent case against Apple.
