After examining its Taiwanese suppliers, an analyst has come to the conclusion that Apple had one of its best months on record in October. This record-breaking performance comes as a result of higher-than-expected sales of the iPad Air, iPhone 5S and new Mac computers.
Despite having a hard time with its landmark iPhone 5C, there was more demand for Apple's high-end iPhone 5S than most analysts had expected. In one of its newer markets, China, Apple is also becoming more prevalent and its share of the smartphone market has increased significantly as a result of the iPhone 5S.
A Record-Breaking Month
With the holiday shopping season rolling in, Apple's performance for October may be a good sign for the rest of 2013. Sales of the iPhone 5S and iPad Air have already been strong but analysts expect the iPad Mini with retina display -- which should come out by the end of November -- to provide another boost in Apple's sales for the quarter.
"We estimate sales in October rose by approximately 11 percent month-over-month and well above the October average of flat month-over-month performance over the past eight years," Cantor Fitzgerald analyst Brian White said Wednesday. "As such, we believe this October will prove to be the strongest in the history of our Apple Barometer."
As Android becomes more prevalent in both the smartphone and tablet markets, it is surprising that Apple has been able to accomplish sales numbers of this magnitude. Since the first fiscal quarter of 2014 is frequently Apple's best time for sales, the company may end up with consecutive record breaking months.
October is usually one of the quietest times for the tech industry as a whole, so with $7.5 billion in profit coming in for the month, Apple surely had more impressive sales than its closest competitors.
Growth in China
China has 1.3 billion residents and therefore, millions of customers in the consumer electronics market. The massive number of consumers has made China one of the most important markets for technology companies, and while Samsung still leads the smartphone industry, Apple is beginning to take hold.
The iPhone 5S has been responsible for most of Apple's growth in the Chinese smartphone market. With the 5S's success, Apple decided to offer the iPad Air on launch day in China (a first for the company.) These first-day launches not only show how important the market is to Apple but it also shows how successful Apple has been in taking over the Chinese tech industry.
In the most recent quarter, the iPhone 5S allowed Apple to regain its position as one of the top five smartphone manufacturers in China. Research from Canalys shows that Apple has seen 32 percent year-over-year growth in China. While this is good for a company that has historically struggled in the country, Samsung is reporting 156 percent year-over-year growth, showing just how far Apple still has to go.