Other people's business

RSS

Five questions answered on Apple’s profit surge

It made $6.9bn.

New Statesman
Photograph: Getty Images

iPhone maker Apple has reported higher profits in the third-quarter than was expected. We answer five questions on Apple’s latest sales surge.

 How much profit did Apple make in the last quarter?

It made $6.9bn (£4.5bn) in the three months to June. This pushed its shares up by 5 per cent in after-hours trading yesterday.

What’s responsible for this better-than-expected profit rise?

It’s iPhone smartphone. Apple sold 31.2m of the mobile device, a record for the June quarter, compared to 26m last year.

How do these latest figures compare to last year overall?

Compared to the same period last year, profit is actually down by 22 per cent. Its profit margins actually shrank to 36.98 per cent from 42.8 per cent.

However, this quarter its sales prices were actually lower at $581, compared with $608 a year ago.

The company’s revenue, which was also better than expected, rose only slightly above the same quarter last year to $35.3bn compared to $35bn a year ago.

What have the analysts said about Apple’s latest figures?

Shannon Cross of Cross Research, speaking to the BBC said:

"The iPhone number should provide some comfort to investors who were worried about smartphone demand.

"That's one of the reasons the stock is up. Expectations were not strong for this quarter."

While Adam Sarhan, chief executive of Sarhan Capital, told the BBC:

"This was a 'blah' quarter and the story hasn't changed.

"Until it delivers a new, innovative product that really adds to both top and bottom-line, I would expect the stock to continue treading water."

So, what is next for Apple?

It’s hard to say, except Apple's boss, Tim Cook, did tell the BBC the company – who’s last innovation was the iPad in 2010 – is planning on introducing some new products soon.

"We are later-focused and working hard on some amazing new products that we will introduce in the fall [autumn] and across 2014," he said.