Apple Inc. said quarterly profit rose 38% to a record high,
sparked by booming demand for its new bigger-screen iPhones.
After years of ceding the popular large smartphone market to
competitors, Apple's iPhone 6 and iPhone 6 Plus debuted in
September to consumers hungry for a bigger display phone from the
Cupertino, Calif., technology giant. Apple encountered supply
shortages for weeks in traditional strongholds like the U.S., as
well as fast-growing markets like China.
Apple posted net income of $18.0 billion for its fiscal first
quarter ended Dec. 27, up from $13.1 billion in the same period a
year earlier. Earnings per share rose 48% to $3.06 from a
split-adjusted $2.07. Revenue increased 30% to $74.6 billion from
$57.6 billion.
Analysts polled by Thomson Reuters estimated that Apple would
post earnings of $2.60 per share on revenue of $67.7 billion. In
October, Apple had projected quarterly revenue of $63.5 billion to
$66.5 billion.
The earnings were driven by record iPhone sales. Apple said it
sold 74.5 million iPhones during the quarter, up 46% from a year
ago and above analysts' estimates for 66.5 million units. Strong
iPhone sales helped Apple claw back market share that it gave up to
Samsung Electronics Co. in the past three years.
As Apple sells more iPhones than ever, it's also selling more
expensive phones. The average selling price of the iPhone was $687
in the quarter compared with $637 in the year-ago period. The
iPhone 6 Plus costs $100 more than Apple's previous high-end model.
Plus Apple is also enticing consumers to upgrade to more expensive
models with greater memory.
Apple's performance was especially impressive in China, where it
surged to become the top smartphone manufacturer during the
quarter, according to research firm Canalys. It also gained market
share against phones using Google Inc.'s Android operating system
in the U.S., Germany, Great Britain, Australia and Spain for the
three months ended November, said Kantar Worldpanel ComTech earlier
this month.
Write to Daisuke Wakabayashi at Daisuke.Wakabayashi@wsj.com
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