Apple's iPhone sales boom while iPad demand disappoints

Apple’s iPhone sales boom while iPad demand disappoints

21 OCT 2014

Apple powered ahead in its fiscal fourth quarter driven by iPhone demand, not least that of the new iPhone 6 and 6 Plus, but demand for its iPad tablet was a weak spot.

The company posted revenue of $42.1 billion for the quarter ended 27 September, a 12.3 per cent increase over the year ago period, and net profit of $8.5 billion, a jump of 13.3 per cent.

The three-month period benefited from just over a week of the iPhone 6 and 6 Plus sales, launched on 19 September. Total iPhone unit sales were 39.3 million, up 16 per cent from a year ago.

“Our fiscal 2014 was one for the record books, including the biggest iPhone launch ever with iPhone 6 and iPhone 6 Plus,” said CEO Tim Cook.

Less stellar was the performance of the iPad. Apple sold 12.3 million tablets in the fourth quarter, a figure down 13 per cent from the year-ago period. This is the third quarter in a row that iPad volumes have fallen.

Elsewhere, Apple said revenue from the App Store grew by 36 per cent in the quarter from a year ago, and cumulative app downloads have passed 85 billion.

Looking forward, Apple forecast revenue of $63.5 billion to $66.5 billion for the final quarter of 2014, which would represent an increase of about ten per cent from the year ago period. This figure would exceed analyst estimates of approximately $63.5 billion.

The company also talked up the future prospects from the launch of its enterprise partnership with IBM, which will launch its first jointly-developed apps next month. These apps will target six industry sectors.

CFO Luca Maestri told Reuters the partners had signed up 50 initial clients for their joint initiative.

Author

Richard Handford

Richard is the editor of Mobile World Live’s money channel and a contributor to the daily news service. He is an experienced technology and business journalist who previously worked as a freelancer for many publications over the last decade including...

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