Apple Inc. (NASDAQ:AAPL) made another impressive round of beating analysts’ estimates, reporting strong quarter performance mainly fueled by its Asian sales of iPhone and iPad. Citing an increase in profits for the quarter by an astounding 94%, the company reported a quarter net income of $11.6 billion, versus only $5.99 billion net income for the same period last year.
Investors are more than happy to know they are earning $12.30 per share, which surpassed the estimates of many Wall Street analysts at only $10.06 per share. This amount is also a far-cry from last year’s earnings during the same period at $6.40 per share.
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Revenues also came in strong, generating about $39.2 billion; up by approximately 58.7% from the $24.7 billion in revenues during the same period in 2011. This is way ahead of the estimates of most Wall Street analysts who predicted the company to earn only $36.81 billion for the quarter.
Apple Inc. (NASDAQ:AAPL) sold about 35.1 million iPhones; a striking 88% increase versus what the firm sold during the same quarter last year. Its iPad performs great, as well, with about 11.8 million units sold, up by 151% due to the release of the new iPad during the quarter; while Mac sold about 4 million units.
The above number of units sold is 5% lower than what the company sold during the last quarter of 2011. Despite that, the actual numbers still beat the projections of Wall Street analysts. Besides, experts normally expect the best performance every last quarter of the year.
Apple Inc. (NASDAQ:AAPL) good performance was mainly driven by its iPhone sales in China. It reported five-fold increase during the quarter, generating approximately $7.9 billion in revenues from the Chinese market alone. The company has forged partnership with China Telecom Corp. with about 600 million subscribers. This further boosts the exposure of its products, especially the IPhone. It is, likewise, projected to get another boost in sales when the company launches the new iPhone 5 by last quarter of the year.
The remarkable quarter earnings report of Apple Inc. (NASDAQ:AAPL) ignited a spark of increase in the company’s stock market performance during the opening rounds of trading, with the stock price enjoying about 9.5% increase at $613.40 per share. During the day, it even went further to as high as $617 per share. This was dubbed by many experts and analysts as the biggest increase, by far, since November 24, 2008.
Having sold millions of iPhones and iPads, Apple Inc. (NASDAQ: AAPL) is poised to make a robust 2012 performance. Most owners of Apple’s products will most likely download various Apple apps. The company expects to sell more apps this year. In fact, the 25th billion Apple app was even downloaded not in the US or elsewhere but in China.
While the Chinese market contributes to a larger pie of the worldwide market of Apple Inc. (NASDAQ:AAPL), it should not fully rely on this market for the bulk of the company’s revenues and sales. Apple Inc. (NASDAQ:AAPL) faces a lot of challenges that hound the Chinese market; this includes copyright and trademark issues, as well as illegal downloads of its iTunes products.
Unless the company has back up plans on how to deal with these problems, its victory may be short-lived. China is also known to imitate branded products. It can easily make a clone of any Apple Inc. (NASDAQ:AAPL) product and sell it at significantly lower price; catering to a much bigger market under low-income group.
Despite the above challenges, investors are still optimistic that the company can effectively manage the issue. Its continued innovations on breakthrough products can sustain the good performance of Apple Inc. (NASDAQ:AAPL) and still remain on top of its competitors, as the market is always on the lookout on what Apple Inc. (NASDAQ:AAPL) has to bring on the table to satisfy the endless craving of people for out-of-the-box electronic personal gadgets that make things easier and more enjoyable.
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