Apple to announce record-breaking £110bn in revenues

Iphone 6

Apple is set to announce a record-breaking $180bn (£110bn) in revenues from sales of its luxury electronics in the year to September, propelled by rising demand for the latest iPhone models.

Chief executive Tim Cook said last week that the iPhone 6 and 6 Plus, which went on sale on 19 September, had “set a new high-water mark” for sales as phone owners rushed to upgrade their handsets.

Apple posts full year results on Monday, and Wall Street is forecasting the Californian company will have sold 38m iPhones in the three months to the end of September, a 12% rise on the 34m mobiles sold by Apple in the same period last year.

Revenues for the quarter are forecast to reach nearly $40bn, bringing Apple’s turnover for the year to $181bn, compared to $171bn last year and up from $65bn in 2010.

Although the iPhone 6 and the larger 6 Plus were only on sale for the final ten days of the September quarter, shoppers bought 10m of the gadgets during their first weekend on sale, and the impact on revenues is expected to be significant.

During the iPad launch last week, Cook said: “These iPhones have become the fastest-selling iPhones in history. And the first 30 days we have set a new high-water mark for the most orders taken. And I don’t mean by a little. By a lot, a whole lot.” 

According to Bloomberg’s average of analysts forecasts, revenues are expected to reach $64bn in the December quarter.

On a less positive note, demand for the iPad is waning, with some 13m forecast to have been sold during the September quarter, down from 14m the year before. This would mark the third consecutive quarter of iPad sales decline. Shoppers appear less willing to upgrade their tablets as often as their phones, and are happy to give other manufacturers such as Samsung a try.

The iPad Air 2, the first Apple tablet to use its finger print scanner, goes on sale this week, with broker RBC Capital Markets forecasting 24m iPad unit sales in the December quarter, slightly higher than the same time last year.

“Demand remains solid across the board and the stock will work higher on record level iPhone sales,” said RBC analyst Amit Daryanani in a note. He has a $114 target on the share price, which currently stands at $98.

Powered by article was written by Juliette Garside, for The Guardian on Sunday 19th October 2014 19.53 Europe/London © Guardian News and Media Limited 2010