IPhones have been making much advancement on the market and today many people own one or more of the devices. Recently, Apple Inc. (AAPL, Financial) made an announcement to the world that its quarterly figure is up by 13 percent because of sales taking place in its iPhones department. The high sales came about because of the introduction of iPhone 6, which took the market by surprise.
Consumer demand
Consumer demand is the major player in the sale of Apple’s iPhone 6 and persons are not necessarily watching price but they are more interested in owning the product. IPhone sales are still Apple’s largest profit making scheme so far and the company’s investors are enjoying a stream of cash coming into the company on a regular basis. So far, iPhone sales in the company stand at about 70 percent in Apple’s outstanding profit run.
As Apple opened for business with its new iPhone 6 over the weekend, consumer demand exploded to new highs. Some 10 million of the iPhone 6 product was sold to consumers and that was just during a weekend spree. As the holiday quarter approaches, consumer demand is expected to continue on the same path it traveled during the weekend sales. An expected sale of 58 million iPhones is expected to reach the hands of consumers, according to Maynard Um, one of Wells Fargo's (WFC) top research analyst. Tony Sacconaghi, who is a financial analyst stationed at Sanford C. Bernstein, reports his estimated sales for iPhone products to be in the region of US$55 million to US$60 million during the coming holiday season.
Apple’s net income boom
Since the large sales boom of iPhone 6 took place in the U.S., Apple’s net income thrust upward to US$8.47 billion, ending the fourth fiscal quarter in September. The company’s shares went up to US$1.42 per share. Experts are predicting that Apple’s per share will be US$1.31 with a backing of US$39.88 billion in revenue. For the remainder of the year leading up to December, the company is touting that its forecast for the future will reach up to US$63.5 billion to US$66.5 billion.
China and India
As sales of iPhone 6 skyrocket in the U.S., Apple took the action to both China and India where there is a combined population of more than 2.5 billion people. As Apple headed for China, the company received more than 20 million pre-orders for iPhone 6. This was enough encouragement for the company’s investors and partners to make haste and penetrate the Chinese market. Apple will be depending heavily on Chinese retailers to continue selling their iPhone 6 in the country. Though the cost of an iPhone 6 might be expensive for many of the Chinese, still sales of the device did well in the country. Sales went as smoothly as shopping at a normal grocery store using a coupon.
As iPhone 6 sales progress in the U.S. and China, Apple rolled out the red carpet for India. If many Chinese find it difficult to afford an iPhone 6, then in India it is a worse scenario. Since India is a country known for its high poverty rate, many people consider owning an iPhone 6 a luxury they cannot afford. For an Indian citizen living in the country to pay US$1000 for a phone sounds ridiculous to many Indians. To make matters worse for Apple, the company does not own a retail store in the country. Instead, it depends on Indian retailers to sell on its behalf. With those factors hindering strong sales in the country presently, consumers in India could only afford to pre-order 21,000 of the coveted iPhone 6. This is a huge difference from the Chinese market, which pre-ordered 20 million in one or two days. Since the demand in India was so low, Apple only shipped 55,000 of the phones to the country.
So far, Apple is working hard to take the phone market by storm and is still looking to take its sales pitch into other countries. With an expected flow of buyer traffic constantly coming its way, Apple can feel confident that iPhone 6 will continue to do well on the market, thus, increasing the company’s revenue figure.
