Apple reports record second quarter iPhone sales of 61.2 million, topping expectations

Apple reports record fiscal second quarter iPhone sales of 61.2 million, topping expectations
Apple topped Wall Street expectations by selling 61.2 million iPhone units for its fiscal second quarter. That set a record for the most iPhones sold by Apple during the January through March period. CEO Tim Cook said that the company is seeing more people than ever switching to the iPhone from other smartphone models . Apple reported a 40% gain in-year-over-year iPhone sales. On a sequential basis, Apple reported 18% fewer iPhone sales from its fiscal first quarter, which is usually the best three month period of the year for the smartphone in terms of sales. 

Apple has enjoyed a surge in iPhone sales thanks to the larger screen sizes on its two latest models. The Apple iPhone 6 features a 4.7-inch glass and the Apple iPhone 6 Plus comes with a 5.5-inch screen. CEO Cook says that 20% of the installed base of iPhone users has upgraded to the iPhone 6 or iPhone 6 Plus.

Apple iPad sales continued to slump. Apple sold 12.6 million units of its tablet, which was below expectations. The company started shipping its Apple Watch smartwatch on Friday. Talking about the Apple Watch, Cook says that the device has over 3500 apps available. "Customer response is close to 100% positive from what I've seen," says the executive."

The tech titan reported revenue of  $58.01 billion for its fiscal second quarter, nearly $2 billion above expectations. Net profit of $13.6 billion, or $2.33 a share for the quarter, topped estimates. For last year's fiscal second quarter, Apple reported $45.6 billion in revenue and $10.2 billion in earnings, which worked out to $1.66 per share. Gross margins rose to 40.8% in the period vs. 39.3% a year earlier. During the quarter, Apple increased its dividend by 11% and increased its share buyback authorization by $50 billion to reach $140 billion.

For the third fiscal quarter which runs from April through June, Apple expects to report $46 billion to $48 billion in revenue vs. Wall Street's expectations of $47 billion. After hours, Apple's shares are up $2.02 to $134.68.

source: WSJ via SeekingAlpha

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