Apple Doubles Its Quarterly Profit
Apple announced on Tuesday that their quarterly profit almost doubled due to the increasing sales percentage that the company registered in the greater China region. This unexpected growth serves as a reassurance because investors no longer think the Silicon Valley giant was past its best days, says Reuters.
Apple had to face very strong competitors in the past year, not just on the technological market, but also in court where most of its legal battles took place. Analysts were all expecting the company to register weaker results than its rival, Samsung, but recent reports show that their quarterly profit nearly doubled. The main factor contributing to this growth was the increasing sales that Apple has had in China since the beginning of the year.
Many more investors will be attracted to the company as shares registered an 8-percent growth in after-hours trade. This achievement is all the more remarkable as the iPhone maker dropped 13 percent in the past two weeks from a record high of $644.
Wall Street analysts estimated that Apple will sell only 30 million iPhones in the first quarter of the year. Reports show that they were wrong as the Silicon Valley enterprise managed to sell 35.1 million iPhones up until now. iPhone sales are usually taken into consideration when it comes to estimating the value of the company because this product accounts for half of Apple’s revenue.
It was particularly iPhone 4S that contributed to this increase because the device was well-received in China, Taiwan and Hong-Kong. Mike Fang, a fund manager at Paradigm Asset Management located in Taipei told reporters that there is still enough room for Apple to grow in China. He justified his declaration by explaining that the American firm will gain even more percentages as soon as it will start collaborating with China Mobile. Thanks to this collaboration the growing momentum will be expanded to the second quarter, but not beyond it.
While customers seem to prefer iPhones to other types of smartphones, the situation is somewhat different for tablets. Analysts think iPads reached saturation point because there were only 11.8 million devices sold in comparison with the 13 million forecast made by Apple.