iPhone Demand Drives Profit at Apple

On Tuesday, Apple posted another enviable quarter of growth in both revenue and profit, which was fueled by its iPhone sales.

However, the results raised an annual question for the most valuable company in the world – How will it keep alive its growth streak?

That issue came to light even more by the muted forecast Apple posted for its holiday quarter, and the unwillingness of Tim Cook the company CEO to speak in detail during a conference call about the plans Apple has to increase sales in 2016.

Overall, Apple posted a $11.1 billion profit for its fourth quarter, which was up more than 31% for the same fiscal fourth quarter as last year. Results for the quarter exceeded estimates on Wall Street.

While the quarterly results were bolstered by its iPhone sales, as the company said it sold over 48 million during the quarter, which was up from last year’s 39 million during the same quarter, the company was very cautious about its sales during the upcoming key sales period during the holiday.

Apple has projected that its revenue will be between $75.5 billion and $77.5 billion the final quarter of the year. While the numbers are overwhelming, the low end forecast was below the estimates made by Wall Street and would represent only a 4% growth over the same period last year.

The last time quarterly sales at Apple dropped below 4% was during the middle of 2013.

When Cook was asked about the 2016 growth prospects for Apple, the CEO said the company does not make guidance beyond one quarter.

The stock price for Apple, which initially rose following the results being posted, later ended flat.

Apple will enter 2016 with a complete slate of newly refreshed products. Last month, Apple introduced its newest generation of iPhones the 6s and sibling 6s Plus. In addition, it launched a new and larger iPad and will start shipping this week the Apple TV.

The Apple Watch sales were not broken out, but in the other products category, which includes the watch, quarterly sales were $3 billion.

 

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