Apple Q3 2014 results are driven by iPhone sales

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Apple released its Q3 2014 earnings on Tuesday which are almost as per most of analyst estimates. Apple profits as expected are attributed to strong iPhones and Mac sales.The company reported revenue of $37.4 billion with net profit of $7.7 billion ($1.28 per diluted share). This is a 12.3% increase in Apples profit from previous $6.9 billion

Apple current revenue of $37.4 billion are up from $35.32 billion a year earlier.However, what the analysts expected was $37.98 billion for Q3 2014, but actual revenues remained a little below of analysts expectations for the quarter. Apple reported$164.5 billion in cash holdings for the month ending June 28

Apple reported that the sales of iPhone remained 35.2 million iPhones. The figures are up from 31.2 million a year earlier. The actual figured remained well below of analysts expectation like that of , Morgan Stanley analyst Katy Huberty who estimated 39 million iPhones sales during the quarter.

Apple’s iPad performance was much below the par and the company sold only 13.2 million iPads in the quarter,as compared to 16.3 million in the same period last year and 14.6 million a year earlier.Overall sales of iPad dropped by 9.2%.

Apple forecasts sales of $37 billion to $40 billion in Q4 2014 as compared to the $40.6 billion projected by analysts.

Apple CEO Tim Cook revealed that since fiscal year 2013 Apple has acquired a total of 29 companies¬† including 5 new companies in last quarter. The three of the latest companies to Apple’s newest acquisitions includes LuxVue Technology, Beats Electronics, and Spotsetter that it acquired in June.

Apple Chief Executive Tim Cook while speaking to Wall street Journal said that “We’re thrilled with the results, and we’re thrilled with where we are going. The momentum is really strong,”

Mr. Cook attributed strong iPhone sales to demand from Brazil, China,Russia,and India.China played an important role in Apple’s revenue for Q3 2014. China Mobile Ltd which is currently world’s largest carrier with over 750 million subscribers has started offering iPhone on higher-speed 4G networks this year which gave a major boost to Apple’s iPhone sales.

Apple executives will discuss the results of Q3 in a conference which is scheduled to start at around 2 p.m. on the West Coast.

Apple is planning to launch it two large screen iPhones this September dubed as iPhone 6, to make a firm grip over smartphone market.

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