Apple sold more than 39 million iPhones during its fiscal fourth quarter, jumping out ahead of analysts’ estimates of around 38 million and well ahead of the near 34 million it sold in the year-ago quarter.
The big handset sales were due at least in part to the massive success of Apple’s two new iPhones, even though they launched only one week before the end of the quarter.
“Our fiscal 2014 was one for the record books, including the biggest iPhone launch ever with iPhone 6 and iPhone 6 Plus,” Apple CEO Tim Cook said in a statement.
Apple’s flagship product provided a boost to net quarterly profits that totaled $8.5 billion, diluted EPS of $1.42, on total sales of $42.1 billion. The figures marked an increase from 2013 fourth-quarter revenue of $37.5 billion and net profit of $7.5 billion. Revenue grew 21 percent year-over-year.
Apple’s big iOS device sales fueled growth for the App Store, which saw its revenue go up 36 percent year-over-year.
In addition to its new larger iPhones, Apple during the quarter unveiled Apple Watch, its wearable due in early 2015, and two new iPads that went on sale this week. Cook made it seem like the company had even more in store.
“We are also incredibly excited about Apple Watch and other great products and services in the pipeline for 2015,” Cook said in a statement.
On the strong selling iPhones, which sold 10 million units in their launch weekend, Apple provided rosy guidance for its fiscal first quarter. The company projected sales of $65 billion.
Before today’s earnings announcement Apple released Apple Pay, its new mobile payment platforms.
Cook said many other players entering the mobile payments space want to monetize customer data and that Apple instead chose to focus on privacy and security.
“I think it’s a killer feature,” Cook said Monday during an earnings call.
Revenue from Apple Pay will now be reported under the Services line item along with iTunes and App Store.
After Apple’s stock rose more than two percent during the day, the company’s shares were up another two percent in after-hours trading.