The US tech giant Apple Inc. (NASDAQ:AAPL) reported a significant rise in its quarterly profit on Monday. Apple said that profits had risen 33 per cent to US$13.6bn (A$17.31bn) compared to a year ago. The California based company cited a sharp increase in iPhone sales in the first three months of the year, with iPhone sales coming in at 61m in total. Revenue also increased to US$58.01bn compared to the previous corresponding period. Sales in China were cited as a major factor to the uptick in sales. Revenue for “greater China” jumped 71 per cent to US$16.8bn in the quarter. China has now passed Europe to become Apple’s second largest market. "We are thrilled by the continued strength of iPhone, Mac and the App Store, which drove our best March quarter results ever," said chief executive Tim Cook.
The results for second fiscal quarter do not include the new Apple smartwatch product, which began deliveries last week. Apple has yet to provide statistics for Apple watch sales, but many analysts are projecting a significant increase in revenue from sales of the new product. Mr. Cook said the response to the new smartwatch product has been “overwhelmingly positive” during a conference call. “It's been really great to see the reaction of customers since their watches arrived on Friday,” he said. The company also announced an additional US$50bn to its share buyback program in an effort to boost its dividend. The board members approved an 11 per cent increase in quarterly dividends to 52 cents per share. Shares of AAPL closed 1.82 per cent higher on Monday. AAPL has advanced 69.20 per cent in the last 12 months and 22.50 per cent so far this year.
Author: Imran Valibhoy
Apr 28, 2015
Since Joining the firm in 2006, Imran has worked on a range of M&A and Capital Market transactions in the natural resources, mining as well as projects in the renewable energy sector. Prior to joining Wise-owl, Imran worked at Euroz Securities in Perth, aiding in the advisory and valuation of companies in the mining and industrial sectors in Australia. Imran has a Masters in Banking & Finance from City University's Class Business School in London and a Bacheloor degree in Commerce from UWA.