Feb9

No End In Sight For Apple

Apple just reported its highest quarterly report ever and is building a $2 billion data center. Where does Apple intend to go from here?

On January 27 2015 Apple announced record-breaking results from the holiday season. Between September 27 and December 27 2014 Apple recorded $74.6 billion in total revenue. This is by far the largest recorded revenue by any public company, ever. It’s also the largest ever net profit, which was recorded at $18 billion. The next closest was ExxonMobil in 2012 with $16 billion.

Let’s take a look at what contributed to Apple’s huge success last quarter:

  • iPhone. The release of the new iPhone 6 and 6 Plus contributed greatly to Apple’s success this last quarter. Apple sold 74.5 million iPhones during the three months. To put this into perspective, think about 34,000 iPhones being sold every hour during the quarter, with the average sale price of each iPhone at $668. IPhone revenue reached $51.2 billion, well over half of Apple’s total revenue for the quarter.
  • iMac and MacBook. Apple expected to sell 5.5 million Macs throughout the quarter. Apple ended up selling 5.52 million Macs, which led to $6.9 billion of total revenue.
  • iPad. Although iPad sales were down this quarter (just over 21 million compared to 26 million last year), there was still a recorded $9 billion of revenue. This is thought to have gone down a bit due to the release of the iPhone 6 Plus, which offers a 5.5 inch screen.

Apple doesn’t immediately expect to top the whopping $74.6 billion that they recorded in the fall/winter of 2015. Tim Cook, the CEO of Apple, is estimating $53.70 in revenue for the upcoming quarter. This seems attainable with how well the iPhone 6 continues to sell all over the world.

With Apple’s record-breaking quarter in the book, what’s next?

Apple Watch

Last September, Apple announced that it would be releasing its own wearable technology. The Apple Watch will be compatible with the iPhone 5, 5s, 6 and 6 Plus, and will offer many apps and real-time interaction such as weather, stock quotes, calendar events and more. Users will also be able to change their music, access Maps, see photos and receive notifications.

Another cool feature of the Apple Watch is the loaded health and fitness sensor. Users can track heart rate and body movements, along with workout apps that allow the user to count calories and set personal weight and fitness goals.

Apple Watch will come in three different models: Watch, Watch Sport and Watch Edition. It is speculated that the Watch Sport will cost about $350, with prices for the other two models going up from there. In fact, the Watch Edition could cost as much as $4,000.

Tim Cook admitted that the Apple Watch will need to be charged daily, which is of considerable concern for many potential buyers. However, you can count on the Apple name alone leading many sales for the new wearable technology.

Although an official release date has not been announced, Apple Watch will be on shelves “Early 2015,” which is thought to be March or April.

$2 billion Data Center

Apple announced on February 2 that it would be building a $2 billion data command center in Mesa, Arizona. In 2013, Apple acquired a 1.3 million sq ft facility to lease to GTAT (GT Advanced Technologies). GTAT was a supply partner with Apple, but recently declared bankruptcy as it couldn’t get its Sapphire Glass into production. Apple’s plan is to repurpose the GTAT facilities and extensively add on in order to satisfy the needs of Apple’s growing cloud and data management, as well as its iCloud service.

The new data center will be driven entirely by renewable resources, which will require new solar collection facilities (Mesa, Arizona is of course the perfect location due to large amounts of sun throughout the year). These facilities will produce 70 megawatts of clean energy, which is equivalent to the amount of energy required to power 14,500 Arizona homes.

In addition to Apple’s plan to stay green, the new data center will supply 150 full-time jobs, and anywhere between 300 and 600 construction and trade jobs.

The new data command center will be the 5th Apple data center run entirely on renewable energy. The other locations are San Francisco, North Carolina, Oregon and Reno, Nevada.

We can expect much more from Apple in 2015. Maybe even another record-breaking year. Gold MacBooks? An Apple television set? IPhone 7?  For now, all we can do is speculate and spread rumors. Keep up with Macworld for all of the latest Apple news, rumors, announcements, and much more.

 

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