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Business, Economics, Marketing

An Apple a day > Makes a healthy profit

I didn’t have to buy an iPhone 4S. My 3GS was still working, even if its  battery wasn’t as powerful as before, and its screen would fade to black on occasion. It was still working, plus, I’ve got a European holiday I’m saving for, and a mortgage to pay. So in my head, I thought, I didn’t need a new phone.

But I was sitting around the dinner table one night with my mates, as we all played on our phones, and realised, I was the only loser with the old shaped iPhone, everyone else had an iPhone 4 or 4S. It wasn’t until one of my mates pointed it out, that I felt inspired enough to upgrade.

So, I became one of the millions of people, who helped Apple to post record profits in the last quarter. Siri, why did I succumb?

The company sold more than 37 million iPhone in three months, and nearly 15.5 million iPads (I bought one of those too).

Profit for the quarter, came in at just over $13billion when analysts expected $10billion.

Not bad at a time where consumer sentiment is soft, and the world’s economy is slowing down.

Last week, the World Bank cut its global growth forecasts, warning that we’re in for a more severe recession than that of 2008.

Now, the International Monetary Fund has slashed its forecast for world growth. Global growth for 2012 is expected to be 3.3 per cent and 3.9 per cent in 2013. That’s a downgrade of just over 0.5 per cent for both years.

Overall, isn’t as pessimistic as the World Bank, saying that a mild recession in Europe will see global activity decelerating but not collapsing.

For Apple though, a slowing economy seems to have done nothing to its bottom line. Now, the challenge will be to keep the momentum going.

The company is likely to launch a new flagship iPhone later this year, with a new form factor, tech term for a new shape, and that will probably be enough to keep consumers interested, not to mention its foray into television with iTV, but that’s another topic.




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