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Apple shares edge higher on fourth quarter results

Apple easily beat analyst estimates for the quarter driven by a surge in iPhone sales

Martyn Landi
Tuesday 21 October 2014 07:40 EDT
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(AP)

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Apple shares rose after the record-breaking launch of the iPhone 6 and 6 Plus pushed net profit to $8.5 billion dollars (£5.3bn) for the final quarter of 2014, despite a decline in iPad sales.

That figure is one billion higher than the same quarter last year, and revenue was also up by almost five billion dollars (£3.1bn)

Apple chief executive Tim Cook said: "Our fiscal 2014 was one for the record books, including the biggest iPhone launch ever with iPhone 6 and iPhone 6 Plus.

"With amazing innovations in our new iPhones, iPads and Macs, as well as iOS 8 and OS X Yosemite, we are heading into the holidays with Apple's strongest product line-up ever. We are also incredibly excited about Apple Watch and other great products and services in the pipeline for 2015."

Apple has refreshed almost its entire product line in the last few months, as well as entering the wearable technology market for the first time with the announcement of the Apple Watch, which will go on sale in early 2015.

In September, following the first weekend of sales of the new iPhone 6 and 6 Plus, both of which have the biggest yet screens on Apple's smartphone, the coming confirmed they had sold more than10 million units in the first three days of sale - a million more than the previous record.

These results were also an increase on the previous quarter, again by around five billion dollars.

According to the figures released, the firm sold almost 40 million iPhones, as well as 12 million iPads - a drop of 13 per cent - although the Cupertino, California-based company's latest tablets, the iPad Air 2 and iPad mini 3 are yet to be launched, with pre-orders only beginning last week.

Increasing competition in the tablet market from the likes of Samsung, Microsoft and Google is said to be behind the steady decline in iPad sales.

Following the announcement of the results, which are better than anticipated by analysts, Apple shares rose 1 per cent in after-hours trading.

The results come on the same day that the company's new mobile payment system, Apple Pay, launched in the US.

Additional reporting PA

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