Coming off a record performance for fiscal Q1, Apple once again knocked it out of the park with its fiscal Q1 numbers. Revenue for the quarter came in $58 billion, while net profit was a hefty $13.6 billion. This compares to revenue of $45.6 billion and net profit of $10.2 billion for the same period one year ago. Gross margin for the quarter came in at 40.8 percent and international sales accounted for 69 percent of Apple’s revenue for the quarter.
Not surprisingly, and as we alluded to earlier this morning, China was hugely important to Apple’s bottom line during fiscal Q2. Revenue from China increased a whopping 71 percent year-over-year.
When it comes to hardware, Apple sold 61.17 million iPhones which of course couldn’t top the record 74.5 million iPhones sold during fiscal Q1. But one must realize that fiscal Q1 included the lucrative holiday season, and that Apple’s fiscal Q2 iPhone performance still represented a 40 percent increase year-over-year. Mac sales improved 10 percent compared to a year ago to 4.56 million units.
The lone weak spot for Apple (and in what has become a trend for the company) were disappointing iPad sales. Apple sold just 12.6 million iPads during the quarter, which marked a 23 percent decrease compared to one year ago.
“We are thrilled by the continued strength of iPhone, Mac and the App Store, which drove our best March quarter results ever,” said Apple CEO Tim Cook. “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.”
Other notes of interest that were gleaned from Apple’s follow-up earnings call include the fact that there are now 3,500 apps available for the Apple Watch, the iPhone 6 and iPhone 6 Plus are attracting a high number of “switchers” from competing platforms, and that Best Buy will offer support for Apple Pay in its brick and mortar stores later this year.
Another interesting tidbit is that the average selling price (ASP) for the iPhone has increased $62 year-over-year to $659. That bit of information shouldn’t be too surprising, however, as Apple was selling primarily selling the iPhone 5C and iPhone 5S at this time last year. This time around, the more expensive iPhone 6 and iPhone 6 Plus are the stars of the show, and that’s reflecting in the large increase in the ASP.