26 January 2010 | Author: J. Cave SEO Consultant

Apple celebrates 50 per cent profit increase

After a bumper Christmas period, Apple has announced a 50 per cent increase in profits, thanks to iPhone sales doubling from one year ago. The 50 per cent increase in profits makes the current quarter Apple's best in the company's 34 year history.

While many other companies buckled under the effects of the recession, Apple saw revenues for the three months (including Christmas), rise to $15.68bn (£9.7bn), a jump of 32 per cent year-on-year. Profits during this time increased to £3.38bn.

The success over the last three months is owed mainly to the popularity of the iPhone which sold 8.7m handsets over the last quarter. Much of this success is due to Apple's decision to open up iPhone sales in China, the world's largest mobile phone market.

Prior to the quarterly results announcement, shares in Apple rose $5.33 (2.7 per cent) bringing the total value to $203.08 however this figure increase by a further $1.28 after the positive results were announced bringing the total cost of a share to $204.36

iPhones weren't the only products that sold during this quarter. Mac sales rose to 3.36 million, although iPod sales fell to 21 million.

Apple are now heading into the next quarter in high spirits. Forecasted sales for the company are between $11bn and $11.4bn.

Daniel Erst from Hundson Square Research points out that while Mac sales have seen considerable growth recently, it only holds a 3.6 per cent share in the global market. With plenty of opportunity for continued growth it's likely that Mac sales will continue to significantly drive profits for the California-based company.