Apple closes fiscal year 2015 with the highest profit in history
Apple is the most successful private company in the world that beats the record set seven years ago by the oil company Exxon Mobil, when prices for energy were so high. The maker of the iPhone, iPad and Mac ended fiscal year 2015 with income of 54,060 billion dollars. It is 36% more than it received in the past year, thankfully to the China market.
Company beat the income record of 45.22 billion dollars that Exxon Mobil registered throughout 2008. If we add up 11.12 billion dollars that company made in 4th quarter, Apple surpasses even if we take into consideration inflation. The accumulated income of 42,27 billion dollars in the first 9 months already determined that things would be easy.
Current value of the Apple Company is 690 billion dollars which grants the company 5th position according to Fortune 500 annual list of U.S. corporations by total revenue for their respective fiscal years, behind Walmart, Exxon Mobil, Chevron and Berkshire Hathaway. The amount of capital that accumulates in the balance reaches 205.7 billion dollars. Although, currently attention had turned to its smartwatch, new tablet for professionals and the updated version of Apple music, the iPhone is still remains the biggest success of the company.
The Cupertino company success owes the biggest part to a single product -the iPhone, which sales represent more than 60% of total earnings, with 32.32 billion dollars for the last quarter. For the whole year the total amount increases to 155.04 billion dollars were reached due to the 74.5 million sales of smartphones during the quarter which is goes along with the last holiday shopping season, by that time the income record was already beaten.
The limits of this time were the 47.5 million devices in the third quarter. Apple has improved only 1% between July and September, up to 48 million units. If that is taken as a reference of the same period of the last year, the increase was 22%. The projection exceeds 75 million in the current quarter, with the extended holiday of Thanksgiving and Christmas.
If taking as a reference all of the Apple products, the business number of the company had risen to 51.5 billion dollars in the quarter, which is 22% better than a year ago. In the nine previous months combined revenue were 182.2 billion dollars. The total of 233.7 billion for the year represents an increase of 28% compared to 2014 income.
The quarter ended in September is usually weak for Apple. So the company takes advantage of that to showcase their innovations. One month ago Apple started selling the new model of iPhone 6S. The accounts were closed a day later. These results don’t involve the impact of this device nor the updates of Apple TV or iPad Pro tablet.
The main question asked by analysts is whether Apple can continue increasing smartphone sales as it has done so far. The advance of this device over the past years has been very robust, with a quarterly double digit rise. But the reality is that Company plays his cards in a very mature market and where rivals compete with devices.
Piper Jaffray, one of the most decisive analysts regarding Apple Company, takes for granted that the iPhone increase rate will be more balanced in the year 2016 and even reduced to a single digit. It depends how sales will go in China. Tim Cook, CEO of the Apple, has put all of his hopes in this market, despite the current weak situation of the Asian economy. China is very crucial to Apple, to the point of being a bigger market than Europe as a whole. Nearly a third of the sales take place in the most populated country on the planet. Revenues for the quarter reached 12.52 billion dollars, representing an increase of 99%. The iPhone, however, is under pressure. Xiaomi and Huawei are the leaders at the moment.
The fear of a moderation in iPhone sales amount is reflected in the market. Apple shares lost 5% since presented the results of the last quarter, compared with 0.5% of the Dow Jones falls, and 10% from the maximum, which is $134.5. The funds that like to make quick cash, instead of thinking long-term, are abandoning that role.
The great problem of Apple same as for Google, Microsoft, Amazon or Facebook is its size. So stockholders are preoccupied to see who will be next. Even though there is growth in the remaining categories, the fear is that it might not be enough to offset a moderation of the iPhone. The iPad, meanwhile, recorded the lowest sales since 2011.