Apple Earnings Soar As China iPhone Sales Surge
SanFrancisco: Apple on Thursday said it posted record earnings in the final three months of last year and iPhone sales were rising in much of China.
The tech giant reported profits of $42.1 billion on revenue of $143.8 billion in the recently ended quarter.
Chief Executive Tim Cook said in an earnings call that iPhone “had its best quarter ever driven by unprecedented demand.”
iPhone sales have increased worldwide, reaching $25.5 billion in the key Chinese market, according to Apple. According to Apple, this figure was 18.5 billion dollars in the same period of the previous year.
Overall, iPhone sales brought in $85.2 billion this quarter.
Cook stated that Apple’s revenue from services such as digital content and subscription entertainment also reached a new quarterly record of $30 billion, an increase of 14 percent compared to the same period of the previous year.
The number of Apple devices used worldwide has exceeded 2.5 billion, Apple reported.
Apple estimates its revenue this quarter will be 13 percent to 16 percent higher than the same period last year.
Cook warned that iPhone production was constrained by supply shortages and rising prices of memory components and advanced chips used in phones.
“We are in supply tracking mode to meet very high levels of customer demand,” Cook said.
“At this point it is difficult to predict when supply and demand will balance.”
Shares of the iPhone maker rose nearly one percent in after-market trading.
Emarketer analyst Jacob Bourne said Apple’s stellar earnings “validate its strategy in an industry in constant flux and strengthen its position in the global smartphone market.”
“But maintaining this dominance is perhaps more uncertain than ever, dependent on the right calls on pricing and the development of next-generation devices, particularly wearables and the anticipated foldable iPhone.”
Google AI collaboration
According to Bourne, all eyes will be on how Apple will make the most of its newly announced partnership with Google to use Gemini AI in its devices.
The company co-founded by Steve Jobs is under pressure to show that it is not falling behind when it comes to artificial intelligence, which has the potential to transform how people interact with the internet and computers.
Apple is thought to have largely stumbled in its efforts to spread AI capabilities into its products. In December, it announced that the head of its artificial intelligence team had resigned.
Apple and Google earlier this month announced a multi-year partnership that will see next-generation AI features, including Apple’s Siri assistant, powered by Google’s Gemini technology.
This collaboration marks a significant change for Apple, which has traditionally developed its core technologies in-house.
Cook said Apple will release a more personalized Siri digital assistant using technology provided by Google.
Cook said on an earnings call that Apple believes Google’s AI technology will allow the company to “unlock a lot of experiences and innovate in a significant way.”
Meanwhile, on Thursday, the Financial Times reported that Apple has acquired Q.ai, an Israel-based startup that specializes in reading facial expressions.
The earnings figures come amid speculation that a successor to Cook is being groomed at Apple, with head of hardware engineering John Ternus being considered the top candidate for the CEO position.
