Apple Sells More but Profits Slide

Posted on Nov 6 2013 - 3:32pm by Paul

The fourth quarter results from technology giant Apple have revealed more sales but less profit.

The total profit for the quarter worked out as $7.5 billion, which is £4.6 billion. This is higher than analysts had expected the firm’s profits to be.

Among the standout facts we can see that sales of the iPhone shot up by 26% to almost 34 million. However, overall the financial year ended with the disappointing news that Apple had suffered its first drop in earnings in over a decade. Net profits for the year ended up at $37 billion.

Tim Cook is the boss of Apple and he said that their business is “stronger than ever”, although they have advised that profits could carry on dropping in the future.  Next year is to see revenue end up at between $55 and $58 billion.

Products Now Cost More to Make

iphonePeter Oppenheimer is the chief financial officer at Apple and he said that the cost of making their iPad and MacBooks had gone up but that priced hadn’t risen to reflect this. Their amount of cash reserves has been given as $146.8 billion. These recently released results were the first to cover sales of the iPhone 5s and 5c, which were expected to help them make inroads into the Chinese market.

The firm’s revenue in China and Taiwan increased by 24%, although iPhone 5c sales figures weren’t revealed. What we do know is that Apple sold more than 9 million of these new iPhone in the very first weekend in which they were put up for sale.

 

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