Apple’s First Quarter Results
Apple reported first quarter numbers last night in the USA and surprised many in terms of both iPhone demand and also production numbers.
Revenue, earnings and margins all came in ahead of analyst expectations driven by significantly more iPhones being sold, 74.5m versus consensus forecast of 63m, and also solid sales growth on the Mac units which shipped about 1m more than last guidance. Management reported record numbers of people switching from the Android platform back to Apple, which shows that these numbers are true customers and not people just upgrading.
The only black spots were iPad revenue numbers, which were weaker than anticipated and also sales in Japan which faced a tough year on comparison and also foreign exchange headwinds.
Expect this to be positive for Apple’s key suppliers, one of which, SK Hynix, reported record profits this morning in South Korea.