Apple Profit Rises by 24 Percent with Surge in Sales of iPhone 5

In the past 5 weeks, the company has revamped its entire line-up of products with new iPhones, iPads, and Macs. On Thursday, Apple revealed that these latest editions will be little expensive.

Apple said that the profit of 4th-quarter jumped 24%, because of sales surge of iPhone. It is the product that accounts for almost half of company sales.

However, the 3rd quarter ended on 29th September and first reflected is the iPhone that was introduced on 21st September. The company struggled and went through a tough phase in the last couple of months. It struggled to deliver enough number of units as per the customer requirements. Even the company shares fell nine percent due to shortage of supply.

The company’s shares have fallen by 9 percent since the product hit the market, in part because of investor concerns about short supply, and discontentment over lack of substantial improvements.

Timothy D. Cook, the chief executive from Apple said to analysts in a conference call that new iPhone has lot more demand and company has more back orders. He also said that iPhone production had picked up considerably in last one month.

Profit report was on the lower side. Apple stock was almost unchanged in afterhours trading. It fell 1.2% to USD 609.54 in regular trading.

Revenues from iPhone have risen from 56 percent to USD 17.13 billion, making almost 48% of Apple’s total revenue. It almost sold 26.9 million units of iPhones, which is 58 percent more compared with 2012.

The company said that total net income through iPhone business was $8.22 billion compared with the previous year’s $6.62 billion. Revenue for the complete fiscal scale year is USD 156.5 billion.

It was the projections from the company that raised the investor’s eyebrows. The company’s forecast earnings were around USD 11.75 per share and total revenue of USD 52 billion.

Apple said that iPad revenues also raised along with that of iPhones. Total revenues rose from 9% to USD 7.51 billion.

With most of the Apple products, iPad Mini arrival is anticipated widely after months of leaks and rumors about the product.

In the Mini Event of iPad, the company hinted that iPad sales was little slower than expected, since they said that they had sold 100 million units of iPad right from its introduction.

iPad Mini is pretty expensive with a starting price of $329, way above other smaller tablets from Google and Amazon.

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