Apple Inc. currently holds the world record in corporate sales. The company, which has taken aggressive steps to blunt the impact of currency volatility on revenue, noted that sales will continue increasing this quarter as the US dollar value surges.
Apple’s Chief Financial Officer Luca Maestri reported December quarter earnings of $18 billion, at $3.06 a share, an increase from $13.1 billion at $2.07 a share. This boost is despite the fact that many US companies are face with challenges from foreign exchange instability.
The strengthening dollar is reducing profits at companies like Procter & Gamble Co., Dupont Co., and Pfizer Inc. who all depend on a large portion of international sales. Apple, receiving more than half of its revenue from abroad, has actually benefited from hedging and raised prices in iPhones in Russia and mobile software applications from Europe and Canada.
Apple’s shares increased after it announced profit and revenue that exceeded fourth-quarter estimates, stimulated by a 46 percent boost in iPhone shipments to 74.5 million units. iPhone sales undoubtedly drove these results.
Nearly 69 percent of Apple’s revenue came from the smartphone. Typically this level is closer to 50 percent. iPhone sales constituted 56 percent of revenue in the previous year. The enormous bump in iPhone sales came from the latest products, its 4.7 inch iPhone 6 and 5.5 inch iPhone 6 Plus. Consumers have purchased these phones in record numbers.
The increase in iPhone sales made up for the decline in iPad demand. Last year, iPad unit sales declined by 18 percent to 21.4 million. The iPad’s role in the tablet market fell as an increasing number of low cost tablets saturated the space. Additionally, tablet sales overall are down, as more consumers are choosing large-screened smartphone devices and deciding not to frequently upgrade their existing tablets.
Apple’s next hit product, the Apple Watch, is set to debut in April.