Even with a slew of competitors coming to market any day now, Apple (NASDAQ:APPL) has a reason for feeling cocky. The maker of the iconic iPhone today reported its best quarterly sales ever for its phones and line of Mac computers. Apple posted a 47% increase in profit in the fourth quarter and sold more than 7.4 million iPhones across 80 countries.
Apple Chief Operating Officer Tim Cook said he feels great about the momentum Apple has already achieved – shipping nearly 21 million total iPhones in its fiscal year, up 78% from the previous year. He also implied that Apple could have shipped more, but took until now to account for the overwhelming global demand. Coupled with the strength of Apple’s iTunes ecosystem and App Store model, plus its forthcoming product pipeline, Apple isn’t phased by the growing competition, which includes new smartphones from Research In Motion, the Motorola Droid on Verizon, the Palm Pre and a slew of other planned Android devices.
“Frankly I think that people are really just trying to catch up with the first iPhone that was announced two years ago and we’ve long since moved beyond that,” Cook said on the call.
Achieving its highest performing quarter yet has only bred even higher expectations. Competitors may be mimicking the iPhone in most meaningful ways, but they also have features that many might see as advantages over the iPhone – the ability to run multiple apps, shoot videos, not be tethered to AT&T – to name a few. Apple hinted at its upcoming product plans – Cook suggested an increase in air freight costs not related to the iPhone – but what that product is, and if it is truly the next market leading smartphone (or netbook or Apple TV or iPod) will determine if Apple can maintain its lead.
