Steve Jobs wrong: iPhone 6 helps Apple set record
Icons can get it wrong too. ‘No one’s going to buy a big phone’ and ‘you can’t get your hand around it,’ founder Steve Jobs famously said in 2010 when queried if Apple Inc. (NASDAQ:AAPL) could’ve done anything to avoid its antenna issues with the iPhone 4.
It isn’t on many occasions that one can find fault with Jobs or his muse, the iPhone, but boy, was he wrong on this one!
After years of keeping the proverbial lid on the iPhone’s screen size to limit it at 4-inches or less, Apple bet big on the big-screened iPhone that it launched on September 9, 2014, and instantly hit the jackpot.
The iPhone 6 comes with a 4.7-inch display and in stark opposite to Jobs’ articulated beliefs, Tim Cook-led Apple launched the iPhone 6 Plus with a display of 5.5-inches.
In the ensuing three months, Apple Inc. sold a record 74.5 million iPhone units – or about 810,000 iPhones every day, a whopping 90 per cent more compared with just a little over 39 million units in the previous quarter.
That led to income from iPhone sales surging a massive 116 per cent over the previous quarter – and an overall revenue gain of 77 per cent quarter-on-quarter thanks to a 74 per cent surge in iPad sales.
That’s official confirmation of what we’ve been saying all along – that iPhone 6 is the hottest selling smartphone. Read: iPhone 6 hottest selling smartphone in Dubai as DSF bargains peak.
Apple’s CEO Tim Cook told analysts in the post-results conference call yesterday that the company is looking to release its next product, the Apple Watch, in April this year. Local Dubai-based retailers expect the Apple wearable to be a huge success too. “We expect the Apple Watch to revolutionalise the wearables segment, just what the iPhone did to the smartphones segment,” Neelesh Bhatnagar, CEO, Emax Electronics, told Emirates 24|7.
The quarterly financial results are stellar – Apple Inc.’s profits of $18 billion are the biggest ever reported by a public company, worldwide.
“The results were fuelled by all-time record revenue from iPhone and Mac sales as well as record performance of the App Store. iPhone unit sales of 74.5 million also set a new record,” Apple said in a media statement.
“We’d like to thank our customers for an incredible quarter, which saw demand for Apple products soar to an all-time high,” said Cook. “Our revenue grew 30 per cent over last year to $74.6 billion, and the execution by our teams to achieve these results was simply phenomenal,” he added.
Cook should especially thank Apple’s Middle Eastern and Chinese customers, who lapped up the iPhone 6 in droves after it first became available in the UAE on September 26, 2014 and China on September 30, 2014.
Apple’s revenues from the Chinese market are up a massive 157 per cent quarter-on-quarter and it’s only a matter of time before income from its Greater China territory (current quarter: $16.1bn) overtakes income from Europe (current quarter: $17.2bn).
The Cupertino-based tech giant’s cash pile now stands at a massive $178 billion, enough to buy the beleaguered BlackBerry – 35 times over.
“Our exceptional results produced EPS growth of 48 per cent over last year, and $33.7bn in operating cash flow during the quarter, an all-time record,” said Luca Maestri, Apple’s CFO.
“We spent over $8bn on our capital return program, bringing total returns to investors to almost $103bn, over $57bn of which occurred in just the last 12 months.”
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