Apple posts the biggest quarterly profit in history

U S technology giant Apple has reported the
biggest quarterly profit ever made by a public
company.
Apple reported a net profit of $18bn (£11.8bn)
in
its fiscal first quarter, which tops the $15.9bn
made by ExxonMobil in the second quarter of
2012, according to Standard and Poor's.
Record sales of iPhones were behind the surge
in profits.
Apple sold 74.5 million iPhones in the three
months to 27 December - well ahead of most
analysts' expectations.
In a conference call with financial analysts
Apple's chief executive Tim Cook said that
demand for phones was "staggering".
However, sales of the iPad continued to
disappoint, falling by 18% in 2014 from a year
earlier.
The demand for Apple's larger iPhone 6 Plus
model appeared to help boost profits and
increase the iPhone's gross profit margin - or
how much Apple makes per phone - by 2% to
39.9%.
However, Apple did not give a breakdown of
sales for the iPhone 6 and other models.
Apple shares rose over 5% in trading after the
US markets had closed.
Technology Correspondent
Apple's impressive results represent a
significant
shift towards the massive untapped potential
of
China.
With a strong line-up of devices entering the
final quarter, it was able to reap the fruits of
its
deal with the world's biggest mobile network,
China Mobile.
However, the success of its latest big-screen
iPhones may have contributed to further
cannibalising sales of the iPad.
The once unstoppable tablet is being further
squeezed both by a resurgence in laptop sales,
as well as by competition - both in an
increasingly saturated US market and in
emerging markets by lower-priced, rival
machines.
All eyes now are on the Apple Watch - but with
a
relatively high base price it is not clear
whether
it will be able to woo more than the Apple
faithful.
Currency woes
Apple's revenue grew to $74.6bn in 2014 - a
30%
increase from a year earlier.
However, on a conference call to discuss
earnings, Mr Cook complained of "fierce
foreign
exchange volatility", which added Apple to a
growing list of US firms who have been hurt by
the strong dollar abroad.
Apple said that currency fluctuations shaved
4%
from its first-quarter revenue.
Sales in greater China hit $16bn in 2014 - a
70%
increase from a year earlier, and almost
equalling the $17bn in sales the company
recorded in Europe last year.
A report by research firm Canalys released on
Tuesday said that Apple had overtaken
competitors to become China's number one
seller of smartphones by units shipped in the
fourth quarter of 2014.
Apple also said that its newest product, the
Apple Watch, was still on schedule and would
begin shipping in April.