Apple Makes Over $10 Billion Revenue Through Christmas Week

  • Apple followed up its strong black Friday performance with a strong Christmas week performance.
  • Apple accounted for 51.4% device activations in the week from Dec 19-Dec 25 2014.
  • The company easily netted over $10 billion in weekly revenue and we will see a solid Apple earnings release for Q1 2015.

Apple (AAPL) followed up its strong black Friday performance with another stellar performance in the week leading up to Christmas. It was indeed a Merry Christmas as Apple accounted for over 51% of device activations from Dec 19-Dec 25 2014. The huge popularity of iPhone 6 and the holiday season performance could propel lead blockbuster numbers in its Apple earnings release for Q1 2015.

iPhone 6 Driving Apple Market Share Gains

The launch of the iPhone 6 has seen Apple’s market share rise in all major markets. According to a Kantar Worldpanel report for the 3 months ending October 2014, the iOS market share rose in the 5 major European markets ranging from a 10.4 percentage point market share gain in UK to a 2.3 percentage point gain in Spain.

OS market share in Europe

The only market to see a decline was Japan, which saw iOS market share fall to 48% from 62% in the comparable period in 2013. The popularity of the iPhone 6 can be gauged from the fact that Apple ended October 2014 with over 40% market share in UK, USA, Japan and Australia.

Apple Sales Show Strong Performance In 2014

Apple’s new payment service launched earlier this year has a huge potential to drive Apple revenue and also enhances the Apple ecosystem. Along with the increased online shopping habits of iOS users, this could drive significant growth in Apple earnings and revenue over the coming years.

Apple followed up its Black Friday showing with yet another strong showing in the lead up to Christmas 2014. Cupertino accounted for 51.3% of worldwide device activations from Dec 19-Dec 25, per mobile analytics firm Flurry. Samsung came in a distant second with a 17.7% share, with Nokia rounding up the top three with a 5.8% share. No other manufacturer saw device activations of more than 2%. Combining this data with estimates of Q4 2014 tablet and smartphones shipment leads to one inevitable conclusion. Millions of iPhones and iPads were sold in Christmas week 2014, netting Apple billions of dollars in revenue. The impact of iPhone 6 on Apple stock price gains will continue in 2015 as well.

According to Industrial Data Corp estimates, 915 million units of smartphones were shipped in first 3 quarters of 2014. The total expected smartphone shipments in 2014 are expected to reach 1.29 billion units, as per data from Statista. The tablets shipments in 2014 are expected to reach 236 million units.

Units, in millions

Q1 2014

Q2 2014

Q3 2014

Q4 2014E











Source: Statista, IDC

Apple Sales Topped $10 Billion.

We estimate Apple’s Christmas unit sales using the data from Statista, IDC and Flurry to arrive at the potential revenue Apple could have generated in the one single week leading up to Christmas.

in millions



December 2014 (units)



Christmas week  (units)



Apple share of Christmas week (units)



Average unit price ($)



Apple’s Total sales in Christmas week ($)



Note: Assumed linear distribution of sales throughout Q4 2014

Our estimates show that Apple could have netted over $10 billion in revenue in the Christmas week. However, we think our estimates are conservative on two fronts.

  • Device sales are likely to be clustered around shopping holidays and hence Apple could have generated far higher sales through the Christmas week as we have assumed a linear distribution of device sales throughout Q4 2014.
  • Also, tablets (iPad) saw a decline as phablets (iPhone 6 plus) encroached the full size tablet territory. This trend could work in Apple’s favor as average price of iPhones is significantly higher than that of iPads and will lead to higher revenue, and by extension, higher profits.


Apple had a strong holiday season and will, in all likelihood see a blowout to start its fiscal 2015. The company is scheduled to report its Q1 2015 results on January 27, before the market opens. Analysts, on a consensus, estimate the company to report earnings per share of $2.58 on revenue of $67.06 billion. The success of the iPhone 6, its global launch in October, the strong iOS device sales in the holiday season, and the resurgent PC demand in 2015 could propel Apple to a revenue and earnings beat in its upcoming Q1 2015 quarterly earnings report.

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Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice. Buying and selling of securities carries the risk of monetary losses. Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions. Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

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