Apple Inc. is pulling off a feat rarely seen in any industry, much less the cutthroat world of consumer electronics: gaining market share while also commanding higher prices, according to The Wall Street Journal today. Led by the larger-display iPhones it introduced last fall, Apple on Monday said it sold 61.2m iPhones in the three months ended March 28, up 40% from the year-earlier period. Many of those sales came in emerging markets, including a 72% gain in the number of phones sold in China.
The average selling price of an iPhone during the latest quarter was $659, up more than $60 compared with a year earlier.
Apple posted quarterly revenue of $58bn and quarterly net profit of $13.6bn, or $2.33 per diluted share. These results compare to revenue of $45.6bn and net profit of $10.2bn, or $1.66 per diluted share, in the year-ago quarter. Gross margin was 40.8% compared to 39.3% in the year-ago quarter. International sales accounted for 69% of the quarter’s revenue.
The growth was fueled by record second quarter sales of iPhone and Mac and all-time record performance of the App Store.
We are thrilled by the continued strength of iPhone, Mac and the App Store, which drove our best March quarter results ever,” said Tim Cook, Apple’s CEO. “We’re seeing a higher rate of people switching to iPhone than we’ve experienced in previous cycles, and we’re off to an exciting start to the June quarter with the launch of Apple Watch.”
“The tremendous customer demand for our products and services in the March quarter drove revenue growth of 27% and EPS growth of 40%,” said Luca Maestri, Apple’s CFO. “Cash flow from operations was also outstanding at $19.1bn.”
Apple pledged to return another $70bn to shareholders and in Greater China revenues grew 71% to $16.8bn during the quarter compared to the same quarter last year, overtaking Europe to become the company’s second-largest market for the first time. China’s iPhone sales surged 72% compared with the same period a year ago, outstripping US sales of the handset — another first for Apple.
Apple was valued at $760.4bn at the official close of share trading Monday at 4:00 pm in New York.