Apple posts strong Q4 results but is warned it could fall behind rivals in cheaper smartphone market

During the period, Apple sold 33.8 million iPhones, which it claimed was a record for the September quarter, and was substantially up on last year’s figure of 26.9 million.

Apple CEO Tim Cook said: “We’re pleased to report a strong finish to an amazing year with record fourth quarter revenue, including sales of almost 34 million iPhones.”

Apple reported slight growth in iPad sales from 14 million a year ago to 14.1 million, while sales of Apple Macs fell from 4.9 million last year to 4.6 million.

Despite stronger smartphone sales, marketing manager at Upstream, Vassilis Tziokas, warned that Apple’s offering may be in a declining market.

“According to a recent report published by Gartner, despite global smartphone ownership rapidly rising, the demand for premium devices is declining,” he said.

“Instead, users in emerging markets are opting for mid-tier devices priced at $200 or less. While many had hoped that 5c would be Apple’s attempt to make its products more accessible to the masses, Apple has been reluctant to dilute its premium price tag."

He added: “This failure to adapt its pricing strategy is something that could cost Apple dearly in the future and markets such as India is where Apple stands to lose the most ground.”

Meanwhile, rival Samsung recently reported a quarter rise in profits (25.6 per cent) year-on-year for its third quarter, revealing a net profit of $7.8bn. According to Bloomberg, cheaper Galaxy smartphones in markets such as China, South America and eastern Europe were a strength for the brand.