Apple’s Stocks Hit New High Thanks to the iPhone [Infographic]

Apple's Stocks Hit a New High Thanks to the iPhone

Last Monday, Apple submitted its financial report that far surpassed the expectations of any analyst. Apple may have released several innovative devices in the last couple of months, but its star product remains the iPhone. According to reports, the company managed to sell roughly 61 models, which means 40% more than what it sold in the same period last year. These sales amassed to roughly two-thirds of the company’s 58 billion dollar revenue.

Although the official earnings report has not been made public yet, and will only become available once the market closes, it is already clear that Apple has made monster sales this year. Bloomberg’s analysts have compiled a list of expected earnings, units sold and margins prior to the company’s official reports:

  • Revenue: 56.03 billion dollars
  • iPhone units: 58.1 million
  • Mac Units: 4.7 million
  • iPad units: 13.6 million
  • EPS: $2.16
  • Q3 revenue forecast: 47 billion dollars
  • Gross margin: 39.5%

Piper Jaffray’s Gene Munster warned that these numbers might have a few errors because Street’s analysts haven’t properly included the foreign exchange (FX) factor in their calculations.

Official Apple Report:

  • iPhone units sold: 61 million
  • Profit: 13.6 billion dollars
  • Revenue: 58 billion dollars
  • iPhone ASP: 658.53$, iPad ASP: 430$
  • Mac units: 4.56 million
  • Cash on Hand: 194$ billion
  • Gross margin: 40.8%

As you can see, the iPhone is the main reason why Apple’s stocks hit a new high.

“We’re seeing great results all over the world,” Luca Mestri, Apple

Key Apple Product Units Broken Down

Apple revenue per product Apple's Stocks Hit a New High Thanks to the iPhone

5 Best Apple Products of 2014

But even with the results of this year’s blow-out reports, it is uncertain whether or not the iPhone will continue to sell at such a rapid pace. It is actually expected that sales for the device will continue to stay strong until the first half of the fiscal year and they will eventually decrease towards the end.

Apple is also quite close to another historic moment. If  reports are correct and the company already sold 61 million units, this will be its second-largest quarter in history. The biggest record happened during the previous quarter, when Apple sold 74.5 million iPhones. One think to note here is that, for the holiday period, sales are usually higher.

“They’re extremely dependent on the iPhone,” said investment Colin Gillis at BGC Partners. “At some point, the market dynamics change… The question is what could replace the iPhone” if sales begin to slow.

A little over a year ago analysts were whispering about the company’s inevitable decline (hinted by single digits growth), but it seems that the iPhone 6 and iPhone 6 Plus have worked wonders for the company. With their release sales have sky-rocketed and the company has found its balance once again.

Apple's main products growth chart

But Apple isn’t only about one product. The company has had phenomenal success with other devices, including its iPads, Macs and, more recently, its smartwatch. Granted, they may have played a smaller part in the company’s revenue, but they are opening new markets for the company. Let’s take a closer look at them.

Mac Sales Increasing

Everybody was surprised to hear that, on a market where the personal computer is starting to become less relevant, Apple’s Mac is actually recording sales growth. According to the official report, the company sold 4.65 million Mac notebooks and desktops.

Of course, this is significantly lower than Lenovo’s 13.4 million sold units, but for Apple it means an additional 5.6 billion dollars in revenue and a 10% growth in unit sale.

Apple Watch Sales Undisclosed

There have been numerous questions regarding the performance of Apple’s smartwatch on the market, but Maestri and Cook declined to make any comments on sales figures. They also added that, at the moment, demand is far greater than demand. In addition to this, orders can only be made online and there are many expedite deliveries that are long overdue.

At the moment, the Apple watch is available for France, Germany, Australia, U.K., Japan, Hong Kong and the United States. Maestri’s closing statement was that the smart-watch will contribute to a “slight dip in the company’s profit margins”. 

iPad Sales Decreasing

iPad and iPhone sales

The iPad seems to be the only product to record a significant decrease in sales this quarter. Needless to say, the iPad was once a hot consumer gadget. It seems not anymore. According to the report, Apple only sold 12.6 million iPads in this quarter (for a 5.4 billion dollar revenue). This means the company sold approximately 4 million less units (16.3 million units were sold during the same period in 2014).

ipad sales chart

This decrease might mean that consumers have finally realized that the tablet isn’t as useful as it seems. There are various tasks which cannot be completed from it (this may also hint towards the growth of Mac sales). Consumers are shifting their attention towards lightweight Macs or new-generation iPhones.

Irrespective of these reports, Cook believes that there is still a future for the iPad.

“I believe that iPad is an extremely good business over the long term, Precisely when it begins to grow again, I wouldn’t want to predict. But I strongly believe that it will.” – Tim Cook

Do you think that it is possible for Apple’s stocks to hit a new high in the next quarter or year? We would love to hear your predictions.

Image Sources: 1, 2, 3, 4

Here’s all the data in infographic form.

apple's stocks_mai desaturat

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