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LOS ANGELES — Apple on Wednesday announced quarterly sales of $45.6 billion
and net profit of $10.2 billion, beating analysts projections of $43.5
billion in revenue. The results for the fiscal 2014 second quarter are
slightly up from the year-ago quarter of $43.6 billion and net profit of $9.
5 billion. "We're very proud of our quarterly results, especially our strong
iPhone sales and record revenue from services," said Apple CEO Tim Cook. "
We're eagerly looking forward to introducing more new products and services
that only Apple could bring to market."Apple said it sold 43 million iPhones
, 16 million iPads and 4 million Apple Macintosh computers in the quarter. "
Despite fears of recent softness, Apple knocked the March-14 quarter out of
the park with iPhone sales and gross margin upticking nicely," said Brian
Marshall, an analyst with International Strategy & Investment Group. The
company, maker of the iconic iPhone, iPad tablet and computers, has been
under pressure to compete with splashy rivals like those from South Korea's
Samsung. The last new iPhone went on sale in September, and sports a 4-inch
screen, considerably smaller than newer models such as Samsung's Galaxy S5,
released this month, with a 5.1-inch screen.Consumers know that Apple
historically releases new iPhones and iPads in the fall, and in this quarter
holds back on purchases, to wait for the new stuff. Meanwhile, Apple is
also on the losing end of a battle with Google's Android platform for the
hearts and minds of mobile consumers. While the iPhone remains a huge hit
and cash cow for the company, Android phones are out-selling the iPhone.
According to researcher eMarketer, Apple's smartphone market share in the U.
S. will rise to 40.5% in 2014, up from 40% in 2013, but Android will beat it
at 50%, up from 49.5% in 2013.Apple hasn't held a public event since last
fall's launch of two new iPad models October 22, but will stage it's annual
Worldwide Developer's Conference in San Francisco June 2nd. The conference
historically touts new updates to the IOS mobile operating system for iPhone
and iPad, and the OSX operating system for Apple computers. However, due to
the pressure from investors, Apple could release, or spotlight, new iPhones
.Michael Walkley, an analyst with Canaccord Genuity, believes larger iPhones
"will create a stronger than normal upgrade cycle among Apple's loyal and
growing customer base." Follow Jefferson Graham on Twitter |
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