Apple Posts $18B Profit In 1Q2015. Most Profitable Quarter Ever!


Apple has smashed Wall Street expectations and predictions of technology observers by posting $18 billion profits during their fiscal 2015 first quarter, ending December 27, 2014. It is the most profitable quarter any company ever had, globally.

Some of the interesting numbers which churn out from their Q1 2015 results:

  • Revenues: $74.6 billion, which is 30% more compared to last year (Google had revenues of $67 billion in entire 2014)
  • iPhones Sold: 74.5 million or 568 / minute
  • Profits: $18 billion or $8.3 million / hour
  • Earning per share: $2.60, which is 48% more compared to last year
  • Wealth earned for investors in last 12 months: $103 billion
  • Total current cash reserves : $178 billion, which is enough to buy IBM or give every American $556
  • If Apple continues to sell its products with the same pace, then within 9 months, their revenues will equal the amount which Indian Government hopes to collect in the year 2014-15, which is Rs 13.6 lakh crore)
  • This quarterly profits of $18 billion or Rs 1.08 lakh crore is half of India’s annual defense budget, which is Rs 2.3 lakh crore

If we compare Apple’s quarterly profits with some other Internet and IT companies, then the massiveness will be more relevant:

Apple vs rest quarterly profits

[Data Source: Rani Molla / WSJ]

Here is how Apple has grown 10 fold in last 8 years!

Apple revenues Profits[Source: Statista]

Shares of Apple rose 5% to close at $114.90 after the announcement of results.

2 Major Reasons of These Historical Results:

China Factor: Besides the sales spurt of holiday season (Christmas-New year), it was China which single handedly propelled Apple’s incredible quarterly growth, which very few had estimated. Out of $74.6 billion revenues, China alone accounted for $16.1 billion, which is an increase of 70% compared to last year. Their partnership with China Mobile has certainly been super successful. Sales in Brazil and Singapore have also doubled for this period.

Bigger iPhone: Apple’s decision to finally launch bigger iPhones is also attributed as a reason for its success. The average selling price of iPhones was $687 this quarter, compared to $603 last quarter, and customers were happy to pay the extra price for the extra size. As per the report, 15% of existing Apple customers switched to the new model, but majority of new customers diverted from Android to Apple.

Total of 5.5 million Mac units were sold, which is 14% more compared to last year, but iPad sales slowed down, yet again as 22 million iPads were sold, which is 14% less compared to last year. 3.5 million iPads were sold, with as average selling price of $436, which is more or less stable. Apple Watch, will be launched in March this year will now be closely watched, as a new stream of revenues open up for Apple.

If we compare quarterly profits of all existing publicly traded, private companies, globally, then Russia’s Gazprom, which is world’s largest natural gas extractor, had the record for most profitable quarter with $16.4 billion profits during first quarter of 2011. With $18 billion quarterly profits, Apple has taken over this feat.

Moreover, besides Apple, all the companies in this list are oil and gas companies. Being a technology company, the record sales and profit generated by Apple during the last quarter has set a new benchmark of success and growth.

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