Apple Reports Record March iPhone Sales in Q2 2014

| Analysis

Apple announced its quarterly results on Wednesday, and the company surprised just about everyone by not only blowing away iPhone unit sales estimates, but in setting a March quarterly record while it was at it. The company sold some 43.7 million iPhones, well ahead of consensus estimates of 38 million, as well as 4.1 million Macs and 16.3 million iPads. I’ll walk through the detail on each below:

iPhones

Nearly 44 million in a quarter is a March quarter record for Apple. This comes out to 5.6 iPhones every second for all of January, February, and March, and soundly beats the 38 million units being tossed around by analysts.

Part of this record number included new and emerging markets for Apple, where Apple saw double digit growth in several key international markets. for instance, Apple CEO Tim Cook told analysts that Apple's internal estimates found that 60 percent of new iPhone customers were switching from Android in China.

Japan saw iPhone sales increase 50 percent over last year, and Vietnam and the UK were also mentioned as markets where Apple saw significant gains.

iPads

Sales of iPads break down to just a smidge over 2 iPads every second of the quarter, coming in at the high end of Apple’s guidance numbers, but below analysts figures. Wall Street was expecting some 19 million units, while Apple reported sales of just 16.4 million.

During the Q&A part of the earnings call, however, incoming CFO Luca Maestri said that Apple decreased channel inventory by some 1.1 million units, meaning that the shortfall in units sold was less significant than its appeared.

Macs

Compared to the other figures 4.1 million units looks like a throwaway number, but I don’t know any other computer company who could sell a computer every two seconds for three solid months and not be pleased by it. Apple usually doesn’t break the numbers down further to talk about iMacs vs Mac minis, or what percentage of MacBooks with Retina Display are sold compared to mere mortal displays, so even followup questions don't tend to have a lot of Mac sales in them.

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I won't lie, it was fun to get the announcement of iPhone numbers that was nearly six million more than what analysts were expecting. Beyond that it was interesting to compare the numbers to last year and even to each other. Every quarter it seems more obvious that Apple is not just a successful computer company, but a stupendously successful mobile company.

I keep mentioning that if people are honest with themselves about what level of tech they actually need, an iPad or even their iPhone might take care of most of it, no secondary computer necessary. It seems that a fair amount of that is happening, since in the time it takes to sell one computer, Apple sold eleven iPhones. I've heard people say "my iPhone is the best computer I have ever owned" and I think they're saying it loud enough that other people are hearing it too and realizing there's something to it.

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Comments

Blissmonkey

While a company like Apple has to have numbers like these to enjoy the success it does, it’s still pretty mind boggling to imagine selling 5.6 phones *per second*.  Definitely makes sense, just hard for the mortal brain to process.

Kelly Guimont

@Blissmonkey that’s why I try to break the numbers down that way. I still have a hard time imagining it, but somehow the smaller numbers make it even more impressive to me. In the time it takes me to walk in an Apple store, touch the new stuff, then leave, that’s like, two thousand iPhones! And I wasn’t even there that long!

ibuck

I’ve heard people say “my iPhone is the best computer I have ever owned” and I think they’re saying it loud enough that other people are hearing it too and realizing there’s something to it.

If they had a Windows PC before, that’s not surprising.

MuppetGate

For the past year, analysts been saying that Apple is doomed unless they release a phone with forty-inch screen. How can they still be selling so many phones with teeny-tiny four inch screens??  It makes no sense! It must be a lie!!

Lee Dronick

  For the past year, analysts been saying that Apple is doomed unless they release a phone with forty-inch screen.

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