Apple gets back to their old ways and crushes earnings on strong iPhone sales

Apple reported their quarterly earnings today, crushing estimates in nearly all categories but especially in revenue and iPhone and Mac sales.

Thanks to the new launch of the iPhone 6 and the large iPhone 6 Plus, Apple had a strong quarter in which Apple CEO Tim Cook was even quoted as saying, "we're selling everything we make."

Overall, revenue increased to $42.12 billion, up 12 percent year-over-year, blowing out expectations of $39.85 billion. Profits were up to $8.5 billion, up 20 percent year-over-year, and also beating expectations. iPhone sales were up 16 percent year-over-year, to 39.3 million, and Macs were another big winner up 21 percent YoY to 5.52 million.

The iPad remained a drag, with sales falling 13 percent to 12.3 million as the tablet market has generally stagnated despite some innovations. iPods continued their long-standing phase out, but still saw 2.64 million in sales, down 24 percent YoY.

Likely the best news for Apple was the iPhone ASP (average selling price), which jumped to $602.92 from $561.06, suggesting a nice amount of sales of the iPhone 6 Plus, which carries a very large price tag that starts at $750.

Let's not forget that Apple also has $155 billion in cash, which by taken by itself would make the company one of the largest twenty tech companies in the world.

Source:
Apple

Written by: Andre Yoskowitz @ 20 Oct 2014 22:18

bobiroc

Of course they do.. Teardowns show that they are charging hundreds more for these phones than they actually cost to make and distribute. A 16GB iphone 6 will cost you 600+ out of contract but only costs about $200 to make and the 64GB is not much more than the 16GB one but apple charges even more.

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20.10.2014 22:47 #1

cmcjk

Originally posted by bobiroc: Of course they do.. Teardowns show that they are charging hundreds more for these phones than they actually cost to make and distribute. A 16GB iphone 6 will cost you 600+ out of contract but only costs about $200 to make and the 64GB is not much more than the 16GB one but apple charges even more. Last time I checked selling something for more than it cost to make was fairly common practice. Once you take off R&D, operations, retail, taxes then they probably make around 45-50% profit on the phones they sell in Apple stores (less if its through another retailer like a contract provider). Although nice and healthy this is not any more than other top end consumer companies. (e.g. Samsung Galaxy S5 $256 to make, sells for $650)

However I do agree that the amount they charge for more memory is criminal, especially when they could easily just give you a memory card slot, which I why I don't buy iPhones.

21.10.2014 06:50 #2

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