Apple grew 157% in China to over $16B in revenue last quarter

Apple-China-Q1-2015

Ahead of Apple’s fiscal Q1 2015 earnings report today, there were signs that Apple had enjoyed significant growth in China and a record number of smartphone sales in the region during the holidays. Today, we get some more insight into that growth, as Apple reported a 157% increase from the previous quarter: revenue of $16.144 billion in Greater China compared to $6.292 billion in Q3. Read more

Live blog: Apple’s Q1 2015 earnings call

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As it revealed earlier this month, Apple will have its quarterly conference call today at 2 PM Pacific/5 PM Eastern to discuss earnings from its fiscal year 2015 first quarter results. These results include sales 74.4 million iPhones, 21.4 million iPads, and 5.5 million Macs. Earlier today the company reported that it earned $74.6 billion in revenue during FY 2015 Q1.

While Apple’s previous quarter included the opening weekend of iPhone 6 and iPhone 6 Plus sales, today’s numbers include the bulk of the sales in the United States and the initial sales of the new models in key markets including China. Today’s reported numbers do include the first sales numbers for the iPad since Apple began shipping the iPad Air 2 and iPad mini 3, and the first Mac numbers since the Retina 5K iMac went on sale. Apple Pay will also be an area of interest for listeners as the mobile payment service only launched the day of the last quarterly conference call.

Investors and analysts will have an opportunity to ask Tim Cook and company questions during the earnings call, and we’ll be listening closely to bring you coverage. Read more

Apple announces Q1 2015 revenue of $74.6b: 74.4m iPhones, 21.4m iPads, 5.5m Macs

(Image via Michael Steeber)

Apple announced its Q1 2015 earnings results today reporting $74.6 billion in revenue earning $18 billion in profit during the three-month period.

Apple® today announced financial results for its fiscal 2015 first quarter ended December 27, 2014. The Company posted record quarterly revenue of $74.6 billion and record quarterly net profit of $18 billion, or $3.06 per diluted share. These results compare to revenue of $57.6 billion and net profit of $13.1 billion, or $2.07 per diluted share, in the year-ago quarter. Gross margin was 39.9 percent compared to 37.9 percent in the year-ago quarter. International sales accounted for 65 percent of the quarter’s revenue.

In addition to its revenue and profit disclosure, Apple reported sales numbers for the following categories:

  • iPhone: 74.4 million units
  • iPad: 21.4 million units
  • Mac: 5.5 million units
  • iTunes: $4.7 billion
  • Accessories: $2.6 billion

Totals:

  • Revenue: $74.6 billion
  • EPS: $3.06 per share

Apple CEO Tim Cook said the following regarding the quarter:

“We’d like to thank our customers for an incredible quarter, which saw demand for Apple products soar to an all-time high,” said Tim Cook, Apple’s CEO. “Our revenue grew 30 percent over last year to $74.6 billion, and the execution by our teams to achieve these results was simply phenomenal.”

Apple CFO Luca Maestri added this:

“Our exceptional results produced EPS growth of 48 percent over last year, and $33.7 billion in operating cash flow during the quarter, an all-time record,” said Luca Maestri, Apple’s CFO. “We spent over $8 billion on our capital return program, bringing total returns to investors to almost $103 billion, over $57 billion of which occurred in just the last 12 months.”

Ahead of today’s earnings report, sales numbers for both the iPhone and iPad were particular areas of interest. Q1 2015 held the bulk of the iPhone 6 and iPhone 6 Plus sales in the United States and saw the new iPhone models debut in key countries like China. Meanwhile, the iPad sales numbers were particularly interested following last quarter’s year-over-year shipment decrease and the release of the iPad Air 2 and iPad mini 3 in October.

Apple’s Q1 2015 numbers follow last quarter’s results of $42.1 billion in revenue and sales of 39 million iPhones, 12.3 million iPads, and 5.5 million Macs. For the same quarter a year ago, Apple reported $57.6 billion in revenue and sales of 51 million iPhones, 26 million iPads, and 4.8 million Macs. Compare also to profit last quarter of $8.5 million and a year ago of $13.1 billion.

Apple will hold its conference call today at 2 PM Pacific/5 PM Eastern to discuss the quarter’s numbers, follow along for our coverage then. Both Cook and Maestri will likely share prepared remarks then answer a round of questions from analysts on the call.

For Q2 2015 Apple is providing guidance between $52 billion and $55 billion. The full Q1 earnings results release is below:

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Apple Pay coming to 200,000 vending machines, kiosks, paid parking & other self-serve locations

Apple Pay Vending Machine

While individual retailers have been announcing support for Apple Pay as more NFC terminals enable the service, it’s still hit and miss on vending machines and other self-serve, unattended hardware. USA Technologies today announced it’s bringing support to around 200,000 of these self-serve payment terminals that its customers use for everything from coffee brewers to vending machines, kiosks, laundry equipment and pay parking terminals. Read more

Apple Pay is secure, but weak ID checks by partner banks create vulnerability, claims report

apple-pay

While Apple Pay is the gold standard for safe card transactions, some partner banks are leaving customers vulnerable to fraud via identity theft thanks to weak checks when cards are added to Apple Pay, according to mobile commerce consultants Drop Labs. Some partner banks are consequently seeing fraud rates six times higher than with physical cards.

For consumers, Apple Pay is extremely safe, thanks to the use of Touch ID fingerprint verification and single-use code transmission rather than sharing full card details. Drop Labs claims that the weak link in the chain is what happens when cards are added to Apple Pay …  Read more

Anticipated iPhone numbers would see Apple threatening Samsung’s smartphone lead

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If Apple does indeed report iPhone sales in line with analyst expectations of 66.5M units, the company could be closing in on the market share lead Samsung has held in the smartphone market since 2011, reports the WSJ.

Research company Canalys notes that Apple’s anticipated growth in iPhone sales coincides with a dramatic drop in sales of Samsung smartphones.

Samsung’s share has been falling, hurt by lackluster sales of its flagship models and the rise of homegrown brands in fast-growing emerging markets. In the third quarter, Samsung shipped about 78 million smartphones, about 25% share of the global market, down from 34% a year earlier, Canalys said.

While that still leaves Samsung well ahead for now, it’s a trendline which could see Apple regain the lead it once held …  Read more

Apple commissions another artistic mural for upcoming Chongqing, China retail store

Screen Shot 2015-01-26 at 5.47.28 PM

Last week Apple posted a video showing how the calligraphy mural painted at one of its upcoming Chinese retail outlets was created just days before that store opened to the public.

Today the company has posted a new video of a second mural, this time at its new Chongqing location. The store features a unique cylindrical entrance, and Apple commissioned two artists—a China-based painter and US-based photographer—to collaborate on the artwork.

Read more

Apple shutting down legacy TestFlight next month following iTunes Connect integration

TestFlight iTunes Connect

Apple today began informing legacy TestFlight users that the services on TestFlightApp.com will no longer be available after February 26th, 2015. Apple bought the popular software testing distribution service through its acquisition of Burstly almost a year ago, and announced plans at WWDC 2014 to roll out its own version of the service in the future. Since then, Apple has integrated TestFlight beta testing for app developers with iTunes Connect. Read more

OS X Yosemite 10.10.2 to add iCloud Drive in Time Machine, Wi-Fi, security + VoiceOver fixes

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Update, Tuesday: It’s now available.

After existing in beta with developers for a few months, Apple is preparing to release the second update to OS X Yosemite in the coming days to customers. The OS X 10.10.2 update was seeded to Apple employees this week under the build 14C109, which is a bit newer than the most recent developer preview. Sources provided the release notes, and there are some notable feature additions and fixes…

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AAPL earnings will come in well above upper end of company’s guidance, say analysts, at $68.3B

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Fortune has done its usual analyst poll ahead of Apple announcing its Q1 earnings tomorrow, and Wall Street is expecting the company to significantly out-perform its earnings guidance of $63.5 to $66.5B.

The consensus among the analysts Fortune polled — 20 professionals and 15 amateurs — is that Apple’s total sales for fiscal Q1 2015 will come in at about $68.3 billion, up 21% year over year.

That would be $1.8B above the upper end of the expectations Apple set back in October …  Read more