California-based American multinational corporation Apple Inc. has reported an impressive second-quarter earnings with a profit of $7.7 billion on revenue of $37.4 billion, an increase of 11.6% from a year ago.
Apple attributed the figures due to a strong iPhone demand. The release of iPhone 6 in September is set to impact the figures for next quarter. In the second quarter the lower iPad sales were a major setback despite iPad being the biggest contributor of the company’s earnings.
Apple has sold a total 35.2 million iPhones in the quarter, which is nearly 13% up from the same period a year earlier. Meanwhile iPad sales fell to 12.27 million, down 9.2% from a year ago.
Apple chief executive Tim Cook said that June quarter revenue, fueled by strong sales of iPhone and Mac resulted has the highest earnings per share growth rate in seven quarters. A cash dividend of 47 cents per share of common stock has been declared to be paid on August 11 at the close of business .
The whole industry has slowed down growth in terms of gadget sales. But this is not going to impact Apple as they expect the recent deal with the world’s biggest mobile carrier, China Mobile to help lift iPhone sales globally.
In the US, Apple is expected to get even stronger with a smartphone market share of 40.5% this year. Apple has patented a smartwatch, which was submitted in July 2011 for patent but made public on Tuesday only.
The watch is descibed as a wrist-worn gadget with a touchscreen and has ability to communicate with a smartphone in its patent. Apple Inc. will be shifting its focus into other areas with ample scope for growth such as wearable’s which is a $10-15 billion market opportunity.