Giant phone manufacturer’s Apple Inc. is set to enjoy a 1.7% profit increase just in the first quarter thanks to the sale of iPhone globally. China especially has a lot to do with is even before the establishment of the China Mobile deal. The record net income is predicted to be about $12.67 billion or around $14.05 per share. This is a great improvement especially when compared to $13.08 billion and $13.81 a share last year. The company’s revenue will most likely increase by 5.4% all the way from $54.51 billion in 2013’s first fiscal quarter to around $ 57.46 billion in 2014.
Expectations from analysts are also closer and inline with the earnings of the company (upper range) with an earning guidance of between $55- 58 billion. The gross margin is also expected to rise especially in the fourth quarter earnings to range from 36.5% to 37.5%. The analysts however say that the figure will most likely be 37.3% but this is just analytical once they have the data and have verified they will be able to tell the exact figure. This margin will most likely be slightly lower than it was supposed to be reason being the company decided to defer some of the revenue that they would get totaling to $900 million by bundling software for free Macs, iPads and iPhones.
The financial projections which are quite optimistic lay on the fact that iPhone sales are going to be stronger. The company has already debuted to iPhone models i.e. iPhone 5c and iPhone 5s. This was done in the first quarter of this year. Another thing that could have encouraged these projections is that the new models started selling in China and some other countries on the very same day that they were introduced in the market in USA. This was via China Unicom Limited and China Telecom Corporation Limited as well as smaller domestic rivals that compete with China Mobile.
After the introduction of the new models in the market, Apple was fortunate enough to enjoy a market share of 12% in the month of October. This was quite a huge leap especially compared to the previous month where it only had 3%. This made the company to be among the top three smart phones company in the country. Globally, iPhone 5s has fast became the best selling phone as of October last year. Surveys conducted predict that the sale of iPhone 5s alone could bring in revenue of about 55.3 million. This is quite impressive seeing that the sale of iPhones makes up 60% of the revenue that Apple brings in. This implies that the iPhone sales will most definitely reflect in the great financial numbers.
Apple has also launched iPad air into the market as well as the iPad Mini. Analysts predict that the sales could be about 25 million. It is also important to note that Apple officially in December inked the China Mobile deal that has been anticipated for quite a long time. This is predicted to be a great move for the company as analysts expect more than 25 million in sales working with the China Company. Sales are already going up and are expected to remain that way.
