New iPhones drive record Apple results

Apple has just posted its latest earnings, and they're a doozy. For the first quarter of the company's 2015 fiscal year, which corresponds roughly to last year's final quarter, Apple shattered revenue and profit records thanks to equally record-breaking iPhone shipments.

  Q1 FY'15 Q4 F'14 Q1 F'14
Revenue $74.6 billion $42.1 billion $57.6 billion
Net income $18.0 billion $8.5 billion $13.1 billion
Gross margin 39.9% 38.0% 37.9%

According to Reuters, Apple's revenue soundly beat the expectations of Wall Street analysts. The average analyst forecast was $67.69 billion, the news agency says, well below the $74.6 billion Apple reported this afternoon.

  Q1 FY'15 Q4 F'14 Q1 F'14
iPhone 74.5 million 39.3 million 51.0 million
iPad 21.4 million 12.3 million 26.0 million
Mac 5.5 million 5.5 million 4.8 million

Apple's iPhone shipment figures explain the revenue record. At 74.5 million, quarterly iPhone shipments were up roughly 46% from a year ago. If you scroll down to the bottom of Apple's earnings release, you'll see iPhone revenue was up 57% over that same time period.

Clearly, Apple made the right call by boosting screen sizes for the new iPhone 6 and iPhone 6 Plus. (Don't miss Scott's review of those, by the way.) Phablets are the name of the game now; no question about it.

The strong iPhone numbers made up for weaker shipments of iPads, which declined about 18% year-on-year. Tablet sales growth has been slowing for some time, so that slump should come as no surprise. As for Mac sales, the 15% unit growth outpaced the global PC industry as a whole by a fair margin.

Apple says it expects $52-55 billion revenue and a 38.5-39.5% gross margin for the ongoing quarter. That would compare quite favorably to the $45.6 billion revenue and 39.3% gross margin the company posted for the same quarter a year ago.

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