Apple Rakes In Record Revenue, Reports $8.5 Billion Profit Following Biggest iPhone Launch Ever

Regarding Apple's financial performance during its fiscal fourth quarter ended September 27, 2014, go ahead and choose whichever adjective floats your boat -- smashing, awesome, fantastic, and the list goes on. By the numbers, it was another record period with Apple collecting $42.1 billion in revenue to the tune of an $8.5 billion profit, or $1.42 per diluted share, compared to revenue of $37.5 billion and net profit of $7.5 billion, or $1.18 per diluted share, in the same quarter a year ago.

"Our fiscal 2014 was one for the record books, including the biggest iPhone launch ever with iPhone 6 and iPhone 6 Plus," said Tim Cook, Apple’s CEO. "With amazing innovations in our new iPhones, iPads and Macs, as well as iOS 8 and OS X Yosemite, we are heading into the holidays with Apple’s strongest product lineup ever. We are also incredibly excited about Apple Watch and other great products and services in the pipeline for 2015."

Apple iPhone 6

Cook has reason to feel giddy heading into the holiday shopping season. Apple's revenue was bolstered by a jump in iPhone sales, which are up 12 percent sequentially and 16 percent year-over-year. Even better are the revenue figures from iPhone sales, which jumped 20 percent sequentially and 21 percent year-over-year. Keep in mind that those figures represent less than a full month of iPhone 6 and iPhone 6 Plus sales.

Apple's Mac sales are booming too, at least comparatively. The Cupertino outfit increased its Mac sales by 25 percent sequentially and 21 percent year-over-year, resulting in an increase in related revenue of 20 percent and 18 percent, respectively.

Apple iPad Air 2

Not all was peaches and rainbows, however. While still the most popular tablet in the world, Apple's iPad sales are trending downward. Apple sold nearly a million fewer iPad devices compared to the prior quarter, and almost 1.8 million fewer units year-over-year. Consumers just aren't seeing a need to upgrade their iPad devices, and with larger size iPhones thrown into the mix, that trend is likely to continue. As a result, Apple's overall success is heavily reliant on its ability to sell iPhone devices -- perhaps more than ever before -- which is by far its biggest money maker.

Nevertheless, Apple expects the cash to keep coming in. Looking ahead to Apple's first 2015 fiscal quarter, the company expects revenue be between $63.5 billion and $66.5 billion.