iPhones still Apple’s bread and butter as profits reach $US7.7 billion

The iPhone is still Apple’s bread and butter gadget, as the tech titan reports strong quarterly profits led by its iPhone sales.

 

Apple’s good news comes after its biggest rival in the smartphone market, Samsung, recently reported quarterly guidance far weaker than expected.

 

Apple reported its fiscal third quarter (April-June) results overnight in the US, posting a profit of $US7.7 billion ($A8.19 billion), up from $6.9 billion for the same quarter last year, and a quarterly revenue of $37.4 billion.

 

Apple sold 35.2 million iPhones during the quarter, compared to 31.2 million in the same period a year ago.

 

According to The New York Times, the quarter ending in June is traditionally a slow time of year for smartphone sales industrywide, as many consumers hold out until the holiday shopping season to buy new phones.

 

The highly anticipated release of the iPhone 6 with a larger screen, slated for later this year, will likely see the product remain the jewel in Apple’s crown.

 

The tech giant’s Mac computers were its second best performing product, selling 4.4 million units in the quarter, up from 3.8 million the same time last year.

 

“Our record June quarter revenue was fuelled by strong sales of iPhone and Mac and the continued growth of revenue from the Apple ecosystem, driving our highest EPS growth rate in seven quarters,” said Tim Cook, Apple’s CEO.

 

International sales drove 59% of the quarter’s revenue.

 

Tablets let the company down, with iPad sales shrinking to 13.3 million from 14.6 million last year.

 

Apple shareholders will be satisfied with the results, with Cook announcing the company returned over $8 billion in cash to shareholders through dividends and share repurchases during the quarter.

 

Apple also provided a guidance for its fiscal 2014 fourth quarter, estimating revenue between $37 billion and $40 billion and a gross margin between 37% and 38%.

 

This article originally appeared on SmartCompany.

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