Demand for the iPhone led Apple’s profits to more than double in the January-March period as the tech giant continued to capitalize on smartphone addiction
Demand for the iPhone drove Apple’s profits to more than double in the January-March period as the tech giant continued to capitalize on smartphone addiction.
Profits came to $23.6 billion, or $1.40 per share, while revenue climbed 54% to $89.6 billion in the fiscal second quarter, the company said Wednesday. Analysts polled by FactSet expected 99 cents per share on $77.1 billion in sales.
The iPhone, Apple’s crown jewel, hadn’t been selling quite as well in the past few years as people held on to their existing models for longer. But the release of four iPhone 12 models last fall has unleashed purchases, and iPhone sales rose 66% to $47.9 billion on top of a holiday-season quarter when iPhone sales jumped 17%.
Some analysts believe the popularity of the iPhone 12 could lead to the device’s biggest sales year since 2014, when the iPhone 6 came out. It was a big hit because Apple enlarged the device’s screen.
The iPhone 12 is the first model that can connect to 5G wireless networks that promise higher speeds but are still being built out. Apple is trying to goose sales even more during the current quarter by with an iPhone 12 in a new purple color.