Notwithstanding the eventual release of new Apple gadgets later this year, consumers still continue to drive the company’s sales and profit in the last three months. However, there is one glaring trend that is worth noting: demand for iPad is declining fast.
The iPhone, Apple's flagship product, continued to gain significant traction. Apple sold 35.2 million iPhones in the last quarter, up 13 percent compared to the same period last year.
Meanwhile, Mac desktop computer was the biggest contributor to the company’s growth, up 18 percent with 4.4 million sold – well above Wall Street analysts' forecasts.
The iPad, on the other hand, was a disappointment. The gadget’s sales fell by 9 percent to 13.2 million last quarter. Another factor hurting Apple's bottom line was the fact that customers are buying cheaper iPads – the average selling price of an iPad fell by about US$ 20 since last year. It means the iPad mini continues to outshine the larger iPad, including the new iPad Air, released in October 2013.
CEO Tim Cook blamed "market softness" in some parts of the world, but he said a turnaround might come from Apple's recently announced deal with IBM to sell industry-specific Apple devices later this year. He also noted that currently, tablets haven't quite caught on in the office. IBM will help change that with a better entry into the business realm.
"We think our partnership with IBM (IBM, Tech30)... will be one such catalyst for future iPad growth," Cook said. "We're very bullish about the tablet market."
The company's profit grew 12 percent to US$ 7.7 billion, or US$ 1.28 per share, during its fiscal third quarter, which ended in June. Apple's earnings per share was nudged up partly because of the company's ongoing stock buyback program, which has lowered the number of shares held by investors by about 7 percent since last year.
Apple posted US$ 37.4 billion in revenue, up 6 percent. Profit exceeded Wall Street's expectations, but sales missed forecasts.
For the current quarter, Apple said it expects sales between US$ 37 billion and US$ 40 billion, also falling short of analysts' forecasts. That sent shares of Apple lower in aftermarket trading.
Even if the company is still swimming in cash, at the end of the quarter, Apple had more than US$ 164 billion on hand, the next period may be a little bit more challenging. All eyes are already on the next few months, because many customers are holding out for the iPhone 6 – assuming that's the name. The phone, expected out in September, will likely have a screen much larger than the latest model's 4-inch display.
Now that Apple has deals with major Chinese mobile carriers and government approval, the iPhone 6 is slated for a blockbuster release around the world – the largest yet.
The iPhone, Apple's flagship product, continued to gain significant traction. Apple sold 35.2 million iPhones in the last quarter, up 13 percent compared to the same period last year.
Meanwhile, Mac desktop computer was the biggest contributor to the company’s growth, up 18 percent with 4.4 million sold – well above Wall Street analysts' forecasts.
The iPad, on the other hand, was a disappointment. The gadget’s sales fell by 9 percent to 13.2 million last quarter. Another factor hurting Apple's bottom line was the fact that customers are buying cheaper iPads – the average selling price of an iPad fell by about US$ 20 since last year. It means the iPad mini continues to outshine the larger iPad, including the new iPad Air, released in October 2013.
CEO Tim Cook blamed "market softness" in some parts of the world, but he said a turnaround might come from Apple's recently announced deal with IBM to sell industry-specific Apple devices later this year. He also noted that currently, tablets haven't quite caught on in the office. IBM will help change that with a better entry into the business realm.
"We think our partnership with IBM (IBM, Tech30)... will be one such catalyst for future iPad growth," Cook said. "We're very bullish about the tablet market."
The company's profit grew 12 percent to US$ 7.7 billion, or US$ 1.28 per share, during its fiscal third quarter, which ended in June. Apple's earnings per share was nudged up partly because of the company's ongoing stock buyback program, which has lowered the number of shares held by investors by about 7 percent since last year.
Apple posted US$ 37.4 billion in revenue, up 6 percent. Profit exceeded Wall Street's expectations, but sales missed forecasts.
For the current quarter, Apple said it expects sales between US$ 37 billion and US$ 40 billion, also falling short of analysts' forecasts. That sent shares of Apple lower in aftermarket trading.
Even if the company is still swimming in cash, at the end of the quarter, Apple had more than US$ 164 billion on hand, the next period may be a little bit more challenging. All eyes are already on the next few months, because many customers are holding out for the iPhone 6 – assuming that's the name. The phone, expected out in September, will likely have a screen much larger than the latest model's 4-inch display.
Now that Apple has deals with major Chinese mobile carriers and government approval, the iPhone 6 is slated for a blockbuster release around the world – the largest yet.
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