Apple profits slip despite iPhone sales boost

Demand for Apple’s cheaper iPhone 5C model has helped lift sales of the smartphone brand to new highs in the last quarter, but it was not enough to prevent declining profit margins as competition from Samsung drove down prices.

Demand for cheaper iPhone 5C model helped lift total iPhone smartphone sales to record highs in the last quarter.

The technology company revealed revenue jumped 4 per cent year to $37.5bn (£23.3bn) in the three months to 28 September spurred by sales of almost 34 million iPhones, a new record for the smartphone range in the quarter. The costs of making the devices dented margins, however, with the business posting a 8.6 per cent year-on-year drop in profit of $7.5bn (£4.7bn).

Apple’s iPad shipments in the quarter totalled 14.1 million, rising slight from the 14 million a year ago. The company unveiled new tablets earlier this month including the latest version of the iPad Mini as it looks to bolster its share of the growing tablet category amid mounting competition from cheaper alternatives. The tech giant said the updates to its product lineup would make it an “iPad Christmas”.

The company’s earnings have now declined quarter-on-quarter three consecutive quarters after a decade of  growth. The shift has come in direct contrast with rival Samsung, which posted another another record quarter earlier this month. The South Korean tech firm, which generates the most growth from  its Galaxy range of smartphones, revealed a net profit increase of 26 per cent to 8.24 trillion won (£4.7bn) and a record 59.08 trillion won (£34.3bn) in revenue in its third quarter.

Apple chief executive, Tim Cook said the company’s foray into new categories in 2014 would spark renewed growth into the business.

He said: “In terms of new product categories, specifically, if you look at the skills that Apple has from hardware, software, and services, and an incredible app ecosystem, these set of things is very, very unique, I think no one has a set of skills like this, and we obviously believe that we can use our skills in building other great products that are in categories that represent areas where we do not participate today.”

Latest from Marketing Week


Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now


Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.


From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.


Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email

If you are looking for our Jobs site, please click here