iPhone sales hit a new high, but things are less rosy for the iPad and iPod
Apple have posted their financial report for the 2nd fiscal quarter of 2014 (ending March 29th). They reveal that the iPhone range is selling better than ever, but the outlook is less positive for the iPad and iPod range which saw a decline in year-on-year sales.
In the last 3 months Apple has sold an impressive 43.7 million iPhones, which is an increase of over 5 million compared to the same time last year. That far exceeds the performance predicted by analysts who anticipated a reduction in sales.
What's not clear is where the new sales have come from, but Apple CEO Tim Cook did reveal that 60% per cent of those buying an iPhone 5C switched from an Android device and 62% per cent of iPhone 4S buyers also switched from Google's platform.
Things are less positive for the iPad range which saw sales drop to 16.35 million from 19 million a year before. While, the iPod range continues to struggle with sales dropping 50% per cent from the same time last year (2.8 million from 5.6 million), as more and more people use their smartphone as an MP3 player.
Overall, Apple made a net profit of $10.2 billion with total revenues of $45.6 billion in the 2nd quarter of 2014, which is up from the same time last year when the company made $9.5 billion net profit from total revenues of $43.6 billion.
“We’re very proud of our quarterly results, especially our strong iPhone sales and record revenue from services,” said Tim Cook, Apple’s CEO. “We’re eagerly looking forward to introducing more new products and services that only Apple could bring to market.”
Apple have dominated the smartphone, tablet and MP3 market for a good few years, but they are seeing huge challenges from all directions. However, they've got a number of marquee product launches coming up in the next year.
The iPhone 6 is set to touchdown in September and is under increasing pressure to deliver the goods because Apple's smartphone rivals raising their game significantly in recent times, with the HTC One M8, Sony Xperia Z2 and the Samsung Galaxy S5 all receiving glowing reviews
Apple are also expected to launch a larger iPad Pro aimed at business users later this year, alongside the next-gen iPad mini and the iPad Air. With sales of the iPad declining Apple will be working furious to turn around the fortune of their tablet.
The Apple iWatch is the big new product on the horizon and Apple expect to sell over 60 million smartwatches before the end of 2014. It's thought to come pre-loaded with iOS 8 and will feature a number of innovative fitness and health features.
The next year is huge for Apple and for consumers the increased competition should lead to more innovation and better value for money!
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