Apple Inc. (NASDAQ:AAPL) has announced its Q2 2015 earnings results and as expected, the results are the highest ever recorded largely due to its strong sales in China. The Cupertino giant sold 61.2 million units of iPhone in the first three months of the calendar year 2015, reporting a staggering $58 billion. The sales number achieved this year is quite a notch up compared to the 43.7 million iPhones sold in the same time frame a year ago.
As already mentioned, the Chinese market played a pivotal role in aiding Apple achieve this mammoth figure, thanks to Chinese New Year in the month of February. Apple CEO Tim Cook earlier predicted that China will become the largest market for Apple. Revenue from China grew 71 percent to 16.82 billion, while its revenue from the American region was up by 19 percent at $21.3 billion.
“We are thrilled by the continued strength of iPhone, Mac, and the App Store, which drove our best March quarter results ever,” said Cook, announcing the company’s latest quarterly results after US stock markets had closed. “We’re seeing a higher rate of people switching to iPhone than we’ve experienced in previous cycles, and we’re off to an exciting start to the June quarter with the launch of Apple Watch.”
Meanwhile, sales of Macs rose by 31 percent in China, primarily due to an expansion of its physical retail and online presence in the country.
“I’ve never seen as many people coming into the middle class as I have in China and that is where the bulk of our sales are going,” adds Cook.
At a net operating profit of $13.6 billion, which is a 33 percent increase. The only let down for Apple was the continued decline of its iPad sales, as smartphones with larger screens or phablets including the iPhone 6 Plus have become the most preferred choice.
With such a staggering response, Apple announced an 11 percent rise in its dividend on Monday along with the addition of another $50 billion to its share buyback program. The company will now return $200 billion to its shareholders by March 2017.
“It’s tough to find something in the numbers not to like,” said Cook.
The latest numbers do not include the overwhelming response to the Apple Watch, pre-orders for which began on April 10 and went on sale on April 24.
“Right now demand is greater than supply so we are working hard to remedy that,” he said. “We’re ahead of where we expected to be from an application point of view.”
Earlier it was reported that close to a million Apple Watches were pre-ordered in the US on the first day it went on sale, with analysts and experts predicting that Apple could sell between 16 million and 60 million in the first twelve months.