Californian company Apple Inc. has announced its fourth quarter earnings. It sold more smartphones and tablets compared to the same quarter last year but made less profit.
Apple sold 33.8 million iPhones last quarter compared to 26.9 million in same quarter last year. This was achieved by the company’s release of iPhone 5C and 5S in the month of September. It also sold more iPads with a total of 14.1 million moved compared to 14 million last year.
| Apple iPhone 5C |
However, Apple sold less Mac computers after 4.6 million units were sold compared to 4.9 million last year.
In all, Apple had a total revenue of $37.5 billion which is higher than $36.8 billion it made last year. However, Apple made a profit of $7.5 billion which is less than the $8.2 billion profit it made during the same time last year. This means the gross profit margin was 37%, down from 40% last year.
Research firm Strategy Analytics estimated on Monday that Apple’s market share slipped from 15.6% to 13.4% in the last quarter while Samsung still leads the market with 35.2%.
“In a strongly growing market, clearly that’s a problem,” said an independent technology analyst for Alekstra, Toni Kuittinen who thinks Apple has sacrificed market share for profit. “Investors have bad memories from companies who decided they’re going to give up market share in the consumer electronics space.”
The newly released iPad Air and iPad Mini 2 didn’t influence Apple’s fourth quarter sales as it was not in the market during the period. It is expected that the sales of Apple’s tablets will increase in this quarter.
“It’s going to be an iPad Christmas.” Apple CEO Tim Cook said in a call.
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