Apple's quarterly profit jumps 33% to hit $18 billion
APPLE on Monday reported a sharp rise in its quarterly profit, lifted by robust sales of its iPhones and a jump in revenue from China.
The California tech giant said profit rose 33 per cent from a year ago to US$13.6 billion (S$18.1 billion), lifted by sales of 61 million iPhones in the first three months of the year.
Revenue increased 27 per cent from the same period a year ago to US$58.01 billion, Apple said.
A major contributor was the expansion of iPhone sales in China. Revenue for "greater China" leapt 71 per cent to US$16.8 billion in the quarter, allowing the region to overtake Europe as Apple's second-largest market.
"We are thrilled by the continued strength of iPhone, Mac and the App Store, which drove our best March quarter results ever," said chief executive Tim Cook.
"We're seeing a higher rate of people switching to iPhone than we've experienced in previous cycles, and we're off to an exciting start to the June quarter with the launch of Apple Watch."
The results for the second fiscal quarter exclude the new Apple smartwatch, which began deliveries last week in nine countries.
Apple offered no figures for Apple Watch sales, but Mr Cook said during a conference call that the response has been "overwhelmingly positive" and that demand continued to outstrip supply.
Apple, already the largest publicly traded company by market value, saw its shares rise in after-market trade by 1.5 per cent to US$134.61 after the better-than-expected results, pushing its capitalisation to more than US$770 billion.
Brian White, analyst at Cantor Fitzgerald, said the results were positive and suggest Apple is still growing at a healthy pace.
"Given the strength of this iPhone cycle, expanded cash distribution and entry into the first new product category in five years with Apple Watch, we believe Apple remains early in this transformational cycle," he said in a note to clients.
Apple's results come after the hugely successful launch last year of its large-screen iPhones, helping it regain market share lost to rivals like Samsung and others using the Google Android platform.
Apple's report showed a 40 per cent jump in iPhone sales compared with the same period a year ago.
But iPad sales slumped 23 per cent from a year ago to 12.6 million units, with revenues down 29 per cent.
AGENCE FRANCE-PRESSE, REUTERS