Apple closed the fourth quarter of the fiscal year with a net profit of $8.5 billion, or $1.42 per share, an increase compared to $7.5 billion in the same period of 2013 revenues increased to 42.1 billion versus $37.5 billion in 2013, with the figures being higher than analysts’ expectations.
The Cupertino company has sold in the fourth quarter of fiscal year iPhones 39.3 million, 16% more than last year and more than analysts’ expectations betting on 38 million. Macs sales were 5.52 million, and 2.64 million iPods sold. The iPad sales were 12.3 million, below analysts’ expectations.
Apple plans for the first quarter of fiscal revenues between $63.5 and $66.5 billion, with operating expenses between $5.4 and $5.5 billion. The data are better than analysts’ expectations. The year 2014 – said Tim Cook, CEO of Apple – was one of our best. “With the innovations we are approaching” the Christmas season “with one of the strongest product lines ever. We are also pleased with the Apple Watch and other great products and services for 2015.”
The company has yet another surprise up their sleeve for the upcoming holidays. Apple surprised by focusing, for the first time, on the low cost. At least according to reports from the site Recode, the monthly subscription to Beats Music, the music streaming service purchased from Cupertino for $3 billion, would drop to $5 compared to the current $10, the average price of similar services. Among these is Spotify, which has just begun to offer a discount of 50% (from 10 to 5 dollars) to family members of a subscriber who wish to subscribe themselves.
The annual cost for Music Beats would drop by $60 from $120, which is exactly the amount spent by the best buyers of Apple iTunes Store to buy albums and songs, writes Recode. In essence, the reasoning by which the Apple would aim to convince the music industry to lower prices is as follows: if the cost of subscription services go down to that figure, every purchaser of music that enters the stream would generate the exact same revenue for the record labels. And, most importantly, the market potential subscriber network becomes much broader.
In early October, it was only announced by Recode, a deal between Apple and the record companies has not been officially confirmed. The business model law provides that the labels receive a payment for each song you listened to on streaming services.