Allaying all the growth concerns that had made the shares dip by almost 12 percent in two weeks , Apple Inc. ‘s profit doubled the last quarter , given the strong demand for the Apple iPhone in China and robust demand for the new version of iPad.
The net income for the second fiscal quarter rose by 94 percent to $11.6 billion , making it almost $12.30 a share, while the sales stood at $39.2 billion up 59 %. The analysts had predicted the profit to be $10.02 per share on revenue $36.9 billion.
In its new strategy , Apple is relying on foreign markets for sales growth as compared to the U.S markets. They sold 35.1 million new iPhones after the release of the latest model in China and 21 other nations after January. The sales decline in the domestic market rooting up because of the mobile carriers AT&T and Verizon cutting down the hefty subsidies , were made up by the increase in sales in the foreign markets . The speculations of Apple’s growth slackening , have put to rest for now.
The results are astounding , as admitted by most analysts and whatever doubt investors had over the continuance in performance will definitely be erased now.
After having dipped 2 % in the NYSE , the shares rose by a sharp 7.8 % after the data came out and the shares ended the day at $560.28 in the extended trading.
With the latest model having a higher resolution screen and an improved processor , Apple managed to sell 11.8 units for the new iPad . The total sales for the iPads ever since its debut in 2010 , stands at 67 million , a target that the Mac Computers could reach only in 24 years.
After the record closing of $636.23 on April 9 , the shares had slumped by $75.95 due to reports suggesting that they lacked key components for their mobile devices and the decline in sales for the iPhone at the wireless carriers. Traders were also influenced by some technical indiactions using historical trends predicting stock movement.
The results have added evidence to the rebound in some sections of the economy , encouraging results for technology bellwethers. Last week , Microsoft had reported higher than expected sales in corporate computers. Texas Instruments, leader in analog chip making , had also indicated heavy demand for a wide range of electronics. IBM , the world leader in computer-services , also came out with higher profit.