Strong iPhone sales have surprised the market, as Apple's third quarter results beat analysts' estimates.
Profits fell at the manufacturer by 22% to $6.9bn (£4.5bn), with profit margins shrinking to 36.9% from 42.8%. This was the second quarter of profit decline in a row, as Apple released the cheaper iPad mini and priced the iPhone more competitively. Its average sale price was $581 (£378.34), compared to $608 (£395.92) in 2012.
However, Apple recorded a record number of iPhone sales for the quarter to 30 June, shifting 31.2 million smartphones, up from 26 million in 2012. However, iPad sales were down from 17 million to 14.6 million. Quarterly sales across Apple were up from $35bn (£22.79bn) to $35.3bn (£22.99bn). This uptick in results was enough to placate investors, who had grown anxious at a perceived lack of invention at the manufacturer in recent years, after a sustained period of stellar growth. An entry level iPhone has been heavily rumoured for launch in the months ahead.
Tim Cook, Apple, CEO, said: 'We are especially proud of our record June quarter iPhone sales of over 31 million and the strong growth in revenue from iTunes, Software and Services. We are really excited about the upcoming releases of iOS 7 and OS X Mavericks, and we are laser-focused and working hard on some amazing new products that we will introduce in the fall and across 2014.'
Author: Graeme Neill