Five questions answered on Apple’s profit surge

It made $6.9bn.

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.

Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

Getty Images.
Show Hide image

Sadiq Khan gives Jeremy Corbyn's supporters a lesson on power

The London mayor doused the Labour conference with cold electoral truths. 

There was just one message that Sadiq Khan wanted Labour to take from his conference speech: we need to be “in power”. The party’s most senior elected politician hammered this theme as relentlessly as his “son of a bus driver” line. His obsessive emphasis on “power” (used 38 times) showed how far he fears his party is from office and how misguided he believes Jeremy Corbyn’s supporters are.

Khan arrived on stage to a presidential-style video lauding his mayoral victory (a privilege normally reserved for the leader). But rather than delivering a self-congratulatory speech, he doused the conference with cold electoral truths. With the biggest personal mandate of any British politician in history, he was uniquely placed to do so.

“Labour is not in power in the place that we can have the biggest impact on our country: in parliament,” he lamented. It was a stern rebuke to those who regard the street, rather than the ballot box, as the principal vehicle of change.

Corbyn was mentioned just once, as Khan, who endorsed Owen Smith, acknowledged that “the leadership of our party has now been decided” (“I congratulate Jeremy on his clear victory”). But he was a ghostly presence for the rest of the speech, with Khan declaring “Labour out of power will never ever be good enough”. Though Corbyn joined the standing ovation at the end, he sat motionless during several of the applause lines.

If Khan’s “power” message was the stick, his policy programme was the carrot. Only in office, he said, could Labour tackle the housing crisis, air pollution, gender inequality and hate crime. He spoke hopefully of "winning the mayoral elections next year in Liverpool, Manchester and Birmingham", providing further models of campaigning success. 

Khan peroration was his most daring passage: “It’s time to put Labour back in power. It's time for a Labour government. A Labour Prime Minister in Downing Street. A Labour Cabinet. Labour values put into action.” The mayor has already stated that he does not believe Corbyn can fulfil this duty. The question left hanging was whether it would fall to Khan himself to answer the call. If, as he fears, Labour drifts ever further from power, his lustre will only grow.

George Eaton is political editor of the New Statesman.