Apple sees 38% jump in profit

DetailsMichelle Clancy | 23 July 2015

CE giant Apple just can't do anything wrong as it has revealed a 38% growth in profit for its fiscal third quarter in its latest earnings report.

The gains were mainly due to healthy iPhone sales (there was a 35% surge there) and especially big growth in China, where sales more than doubled, and they lifted Apple's cash reserves to a record $203 billion.

However strong the gains were, iPhone unit sales of 47.5 million were still down about 23% from its fiscal Q2 the result of the company lowering iPhone inventory by 600,000 units during the quarter.

Undoubtedly the flagship product, sales of the video-friendly iPhone made up about 63% of Apple's overall sales for FQ3 2015, compared with 53% in the year-ago period and less than half three years ago. A big part of that is its new-found success in China, where revenue more than doubled to $13.23 billion and sales rose 87%.

Apple doesn't break out the performance of products in its 'other' category, which includes the iWatch, iPod, Apple TV and Beats accessories. However, sales of that segment rose 49% to $2.64 billion.

Apple's profit in the quarter rose to $10.7 billion from $7.74 billion in the year-ago period. Revenue jumped 33% to $49.61 billion.