iPhone powers Apple profits

The popularity of the iPhone 6 has boosted profits at Apple by a third.

Technology giant Apple announced a record January-March quarter. It grew profits by 33% to $13.6bn on a 27% rise in revenues to $58bn. The star performer among its gadgets was the iPhone, the sixth version of which, with a bigger display than its predecessors, was launched six months ago.

Apple sold 40% more units than in the same period last year. The number of phones sold in China jumped by 72%. Unit sales in China, Hong Kong and Taiwan now eclipse those in the US. The Apple Watch went on sale last week. Apple hiked its dividend by 11% and said it would spend another $50bn on buying back shares.

What the commentators said

More broadly, Apple "is pulling off a feat rarely seen in any industry, much less the cutthroat world of consumer electronics", said Daisuke Wakabayashi in The Wall Street Journal. It is gaining market share while bumping up prices.

The average selling price of an iPhone in the last quarter was $659, a $60 increase on the previous year. It now accounts for 70% of overall sales, and an even higher share of profits. Meanwhile, although iPad sales continue to slump, Mac computer sales rose by 10% at a time when the overall PC market slumped by 7%.

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021
Four investment trusts for income investors to buy now
Investment trusts

Four investment trusts for income investors to buy now

Some high-yielding listed lending funds have come through the crisis with flying colours. David Stevenson picks four of the best.
12 Apr 2021