Apple Breaks Records with Massive Sales and Profits

It appears that most of the reservations surrounding the supposedly-lukewarm iPhone 8 reception were mostly for nothing. According to the earnings report for the fourth quarter, Apple once again broke its previous sales records, managing to earn $52.6 billion in the period between July and September.

Results Above Expectations

This represents an increase of 12% over the same time period a year ago. The sales of the iPhone reached 46.7 million units during the quarter (against forecasts of 46 million), while those of the iPad were at 10.3 million units, up by 11 percent.

The Macs meanwhile scored 5.3 million in sales, which is 10% higher than last year. The services division, which includes the music division and Apple Pay, also scored big with sales of $8.5 billion.

The average selling price of the flagship category, the iPhone stayed flat at $618, below the expectations of $633. It will very likely increase in the future with the launch of the iPhone X. The earnings call had a positive impact on Apple’s stock price, which crossed record levels after the earning call, up by 3 percent.

Next Quarter Predictions

For the next quarter, Apple expects a revenue in the range of $84-87 billion, as well as a gross margin of up to 38.5 percent. The operating expenses are said to remain between $7.65 and $7.75 billion, while the tax rate will remain at 25.5 percent. As a reference, this time last year Apple announced a revenue of $78.4 billion.

The next quarter will likely bring an even bigger figure thanks to the launch of the iPhone X. With a lot of people waiting for its launch, the most-expensive iPhone is likely to bring a sizable boost to Apple’s earnings.

Perhaps more encouragingly, the sales from overseas business is increasing, accounting for 62 percent of overall sales.