Apple has convinced millions of iPhone users to upgrade to the iPhone 6 and 6 Plus, and a number of Android users are also making the switch to Apple’s larger screen smartphones. The company exceeded analysts’ expectations by selling almost 39.3 million iPhones during its most recent quarter, a 16% increase from the year ago period. Profits were up 13% from the year-ago quarter.
Strong uptake of the new iPhones is very good news for wireless carriers, who earn an increasing share of their revenue now from device sales rather than sales of minutes, data plans and services. At the same time, the innovative device financing and early upgrade plans offered by the carriers are good news for Apple and have probably encouraged many mobile subscribers to upgrade to a new iPhone.
Many iPhone buyers have wanted the new devices enough to wait longer than usual. Inventories have been lower than they were when Apple launched the iPhone 5S and 5C, and wait times of a week or longer have been common for consumers ordering the new phones.
Apple CEO Tim Cook told investors yesterday that iPhone sales were ahead of Apple’s expectations, and that revenue growth was the strongest it has been in seven quarters. The iPhone now represents well over half of Apple’s revenue.
Apple said that quarterly revenue was $42.1 billion and quarterly net profit was $8.5 billion, or $1.42 per diluted share. Revenue from Macintosh sales actually outpaced revenue from iPad sales, which slipped again this quarter. For more on that see the video below.
