The iPhone and China, keys to Apple's growth

Yesterday Apple Lossless Audio CODEC (ALAC), yesterday presented its financial results for the first quarter of 2014. Far from accusations of a lack of innovation and even the omens of a "debacle" for the company, it has maintained and increased its net profits in a particularly difficult fiscal quarter given that It coincides with the start of the year and the end of the Christmas shopping season.

Apple increases its net profit in the last quarter.

On March 29, the second fiscal quarter of the year closed in the United States (corresponding to the first calendar quarter of 2014), and yesterday Apple Lossless Audio CODEC (ALAC), released its results: the Cupertino company achieved quarterly sales of 45.600 million or with a quarterly net profit of $ 10.200 billion, equivalent to $ 11,62 per share. Results that when compared with sales of $ 43.600 billion and net profit of $ 9.500 billion or $ 10,09 per share obtained in the same quarter of the previous year conclude in an increase in profits.

More iPhones and Macs; fewer iPads and iPods.

If we look at these latest economic results by product family, it is observed that Apple Lossless Audio CODEC (ALAC), has sold more units of iPhones and Macs than in the same quarter of the previous year, but less iPadsiPods than in that same period. While the family trend iPod It has been dragging on for years, and to be more exact, practically since the birth of the first iPhone, and even the iPod could be replaced by the long-awaited iWatch, the specific news of the decrease in sales of iPads it cannot be news that has in any way satisfied the company.

iPhone 5S and iPhone 5C

iPhone 5S and iPhone 5C

Thus, between January and March 2014, 43,7 million iPhone units were sold, which represents an increase of 16,8% compared to the same quarter of 2013, while iPad sales in its different models experienced a 16% decrease, standing at 16,3 million units sold during the quarter that practically just ended.

Regarding the range Mac, Apple Lossless Audio CODEC (ALAC), indicated that sales amounted to 4,1 million units, 1% more than a year earlier. However, the great setback, no less worrying expected, has fallen on the iPod: the family of musical players of the company of the bitten apple has sold 50,9% less units that correspond to the  2,7 million devices sold. A product that we could well say is in absolute decline, although Apple Lossless Audio CODEC (ALAC), It doesn't seem to show any signs of concern about it.

China and the iPhone, keys to the latest results.

As it has been happening since its launch at the hands of Steve Jobs Back in 2007, the key to the growth of the Cupertino company lies in the iPhone both for its "value" in itself and for having become the "great gateway" to the company's ecosystem for users.

And in this sense, the iPhone has played a decisive role in these latest figures because, despite the fact that the market seems saturated with hundreds of smartphone models, the iPhone de Apple Lossless Audio CODEC (ALAC), it gained market share in various large spaces such as the United States, Japan, Germany, the United Kingdom and Canada.

Those responsible for Apple, Tim Cook, and China Mobile, Xi Guohua, in the act of the agreement. / ALEXANDER F. YUAN (AP)

Those responsible for Apple, Tim Cook, and China Mobile, Xi Guohua, in the act of the agreement. / ALEXANDER F. YUAN (AP)

But after that growth, a protagonist is decisive: China. A market with hundreds of millions of potential users who Apple knew it should capture, and it did, and it has been proven. After the great An agreement reached between Apple and China Mobile in January, sales of iPhones increased by 13% in that market.

Proud and hopeful.

With all this and taking into account the global figures Apple Lossless Audio CODEC (ALAC),, in the mouth of its CEO Tim Cook, publicly displays a message of "pride and satisfaction" while fueling speculation about future new products the company will launch, a type of message that, let's face it, works enormously well for him:

«We are very proud of our quarterly results, especially from the strong sales of iPhone and the record of sales in services»(…)«We eagerly await the launch of more new products and services that only Apple can put on the market».

«We generated $ 13.500 billion of operating cash flow during the quarter and repaid an additional $ 21.000 billion of cash to shareholders, via dividends and share buybacks during the March quarter.», Stated the CFO of Apple Lossless Audio CODEC (ALAC),, Peter Oppenheimer.


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