25th April, 2012
iPhone raises Apple’s Profits by 94%
Apple has released its results
for the first quarter of 2012 with almost a double increase in sales as
compared to the same period in last year owing to an increase in iPhone sales
in China and twenty one other countries.
Its net income has increased by
94% to $11.6 billion, up from $6 billion recorded last year. Analysts had
already predicted an increase in sales to $36.9 billion; Apple has exceeded the
expectations by $2.3 billion. It recorded an increase of 59% in sales to $39.6
billion translated as $12.30 per share.
Apple has now surpassed Google in
the first quarter results which reported revenues of $10.65 billion.
Apple sold nearly 35 million in
China and other countries. Sales from China alone account for 20% of Apple’s
total revenues. The high disposable income of Chinese consumers makes it an
ideal place for high end technology and luxury products.
Apple is already in discussing
terms with China Mobile, world’s largest carrier with 600 million subscribers in China.
Apple’s investors had earlier seen
a drop in share value by 13% in two weeks owing to decrease in sales in US but
the current results should allay any investor fears regarding the pace of Apple’s
growth. Stock markets have reacted positively to the news with shares rising by
7% to $601 in after-hours trading.
Apple’s CEO Mr. Tim Cook revealed
that Apple sold about 67 million Mac PCs in 24 years while it has reached the
same mark with iPad in two years. Total iPad sales during this period stood at
11.8 million units, an increase of 150% from last year. The company now has
$110.2 billion in cash reserves and investments.
Meanwhile Microsoft Corporation,
IBM and Texas Instruments Inc have all reported an increase in sales and are
expecting higher profits.
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