Increased iPhone sales in China and other emerging economies has helped Apple Inc. (NASDAQ:AAPL) end 1Q2015 ahead of Wall Street estimates. It’s the fifth consecutive quarter when Apple has outperformed the estimates. According to reports, the higher than expected sales of iPhones led the company to register an excellent performance and return $70 billion to its shareholders.
Road So Far
Apple; the most valuable company in the world by market capitalization reported a massive growth of 27% in quarterly revenues. It managed to post $58 billion in the fiscal second quarter, a little more than $56 billion that analysts had predicted. The primary reason that took Apple ahead of analysts’ expectations was the surge in iPhone sales. As per the reports, it managed to sell 61.2 million units of iPhone in the previous quarter, 40% more than the quarter before.
If taken into consideration the international market, China came out as a surprise package where company registered 71% growth in terms of revenues. Apple managed to earn $16.8 billion revenues in Greater China during the previous quarter, 71% higher on YOY basis. With the help of this second to none performance, China overtook Europe and became the second largest market for iPhone. In terms of number of units sold in China, Apple registered 72% hike in China on YOY basis.
The senior management of Apple looked delighted after achieving this milestone. According to Tim Cook, Chief Executive Officer, Apple, it’s been a remarkable quarter. Apple never witnessed as many people coming in the middle class as in China, which has resulted in this unbelievable performance.
iPhone sales in all the emerging markets elevated by 58% during this quarter and touched nearly 40% of Apple’s total revenue. Cook stated that Apple would try to continue such performance and outperform the market in the coming quarters as well.
