UAE- Apple juggernaut just won't stop with another record quarter


(MENAFN- Khaleej Times)

Apple CEO Tim Cook summed it up in the simplest way he could: fiscal 2015 is the company's most successful year ever.

The tech titan is continuing to show the world the stuff that it's made of reporting yet another record quarter spurred by sales of the iPhone 6s and 6s Plus last month.

In a conference call at 1am Dubai time on Wednesday Apple revealed that revenue was up 22 per cent at $51.5 billion better even than the company's own forecast of between $49 billion and $51 billion. Its net profit was at $11.2 billion or $1.96 per share in the quarter ended September 26 against $8.47 billion or $1.42 per share in the year-ago period. Gross margin was at 39.9 per cent against 38 per cent in the same period last year.

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iPhones sold in the quarter were at 48.05 million better than views of 47.9 million resulting in $32.2 billion of earnings.

Record sales were also posted for iPads and Macs which sold 9.9 million and 5.7 million units respectively pitching in $4.28 billion and $6.88 billion. The latter were also records.

"This continued success is the result of our commitment to making the best most innovative products on Earth" Cook said "and it's a testament to the tremendous execution by our teams."

Revenue from services which includes iTunes and Apple Pay was also at an all-time high at $5.09 billion. Earnings from "other products" which include Apple Watch Apple TV and Beats were at $3.05 billion.

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International sales accounted for 62 per cent of the period's revenue. In Greater China including Hong Kong - which is emerging as a key market for Apple - revenue was at $12.5 billion during the fourth quarter down from $13.2 billion in the third quarter. However that is 99 per cent up from $6.3 billion a year ago. Cook said in the conference call that Apple "continues to focus and invest heavily" in China. iPhone unit sales in the Mainland are up 120 per cent.

Apple's aggregate cash supply is now at a whopping $205 billion - up over $2 billion. The record September-quarter results drove earnings per share growth of 38 per cent and an operating cash flow of $13.5 billion.

For fiscal first quarter of 2016 Apple provided a guidance of revenue between $75.5 billion and $77.5 billion while gross margins are seen at between 39 and 40 per cent. Operating expenses are pegged at between $6.3 billion to $6.4 billion.

Apple chief financial officer Luca Maestri also said that $17 billion has been returned to its investors during the quarter through share repurchases and dividends; over $143 billion of the company's $200 billion capital return programme has now been completed.

Cook said that Apple is heading to the holiday season with its "strongest product line-up yet" and expects the iPad Pro which begins selling in November and the new Apple TV which starts shipping this week to further reinforce the company's position.

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He pointed out at the conference call that 30 per cent of new iPhone buyers made the switch from Android devices. Cook also said that it has been a huge first day of pre-orders for the Apple TV saying that "apps represent the future of TV".

Apple Music - which is coming to China this quarter - has over 6.5 million paying users. Apple Pay us also seeing double-digit growth.

The average selling price for an iPhone is up $67 at $670. The iPad meanwhile commands a 73 per cent market share in the US market for tablets priced above $200.

Seven new Apple Stores were opened including one in Beijing. There are plans for 40 to 50 new or refurbished stores in 2016 with a focus on China. On Thursday the first Apple Stores in the region simultaneously at Dubai's Mall of the Emirates and Abu Dhabi's Yas Mall.


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