Softbank Pushes Big Profits Thanks To Apple Products
Japanese mobile provider Softbank doubled its profits in Q3, and much of that profit was derived from the sale of Apple iPhone and Apple iPad products.
Softbank has reported a net income of 65.9 billion yen ($724 million) for the quarter ending in December. Softbank claimed 32.8 billion yen ($357.5 billion) in the same quarter of 2011.
Sales at the mobile wireless giant grew by 7.1 percent to 923.7 billion yen ($10.1 billion).
Softbank shares also grew by 3,260 yen ($35.53) before the company’s earnings announcement.
News of increased sales arrive just after the company purchased a 420 billion share in Sprint Nextel, a move meant to aggressively push the company into the US market. Softbank also purchased eAccess, a move meant to increase bandwidth requirements for its quickly increasing iPhone sales.
Softbank CEO Masayoshi Son believes Apple products have increased Softbank sales by seven times over the last four years. According to Son:
“Sales of the iPhone 5 have been strong, contributing positively to our earnings.”
Softbank’s increasing sales and profits come at a time when Japan’s largest carrier, DoCoMo, posted declining earnings throughout 2012. DoCoMo lost customers in November and December, the first losses in five years.
Softbank will need to move cautiously into the future. If Apple fails to offer the innovations customers demand, the company could suffer the same loss of interest in Japan that it is currently experiencing in the United States.