Profits for US tech giant Apple have exceeded expectations, boosted by an unprecedented number of iPhone sales.
Apple reported net profit of just under $6 billion in its fiscal second quarter, which almost doubles the figure from last year. Revenue was up 83% totaling $24.7 billion, nearly $1.30 billion more than highest expectations, according to business intelligence group Thomson Reuters.
iPhone unit sales hit a record 18.65 million, translating to almost $12 billion in revenue – a whopping 113% rise compared to last year. This puts Apple ahead of Nokia as the biggest seller of mobile phones in terms of revenue, though the Finnish firm still clings to its diminishing majority share of sales in the global mobile handset market.
Apple shares rose 2.5% on Wednesday’s price, trading at $351.
Verizon Sells 2 Million iPhones in Two Months
AT&T was the sole provider of the iPhone in the United States until February this year, when Verizon Wireless joined the fray. With over 2 million unit sales in the two following months, Verizon sparked the interest of other US rivals who would love to get in on the iPhone action.
The positive news for Apple comes just after announcements of a law suit from one if its biggest rivals Samsung. The South Korean company is counter-suing the US firm with both sides accusing the other of infringement over their smartphone and tablet PC patents.
This is the latest fight in the fiercely competitive smartphone market, as rivals squabble over ownership of smartphone patents. Nokia sued Apple in March, which was followed by Apple suing HTC. Apple has also already brought legal cases against Samsung and Motorola.
Key Statistics – Global Mobile & Smartphone Industries (source: Datamonitor)
- Global mobile phone market will be worth $155.3 billion in 2014
- By 2014 over 1.50 billion handsets will be in circulation throughout the world
- With 55% of global market share, Asia-Pacific is the biggest player in the global mobile phone network
- Global smartphone market is forecast to undergo 58% growth in 2011 (source: Gartner)