Apple Inc (NASDAQ:AAPL) announced its Q4 earnings on the 21st of October. Once again the tech giant beat all expectations. This was due to the excessive shipments of the iPhone models, increased sales of its Mac product and the increased revenues that it had through its App Store. The quarterly revenues of the company were $42.2 billion which grew around 12.3% on a yearly basis. The net income of the company also saw an increase of 13% amounting to $8.5 billion. The earnings per share of the company grew to $1.42 whereas last year’s stood at $1.18 only. Icahn was right when he stated that share prices of the company were to rise, being one of the biggest stockholders of Apple (NASDAQ:AAPL) himself. It won’t be long when Apple’s (NASDAQ:AAPL) shares will cost $200 each. He stated that this could increase as the company had enough money now to make buy backs. He seemed pretty sure at the time when he made this statement and rightly so. The expectations which the company had for the holiday quarter were also highly encourageing being at a range of $63.5 billion to $66.5 billion in revenues and gross margins at 37.5% to 38.5%. Apple Inc (NASDAQ:AAPL) shipped 39.3 million of its iPhones this quarter and experienced a 16% increase since its previous quarter. However the company is experiencing much in the way of problems as well. The demands of the iphone are increasing so much that supply is being outrun. Many customers are being put on hold for the company to create more iphones. It has been estimated that the demand for Apple’s (NASDAQ:AAPL) new iphone is to remain strong in the coming years and users are said to keep it for a while. With the two-year exchange contract being offered to customers, the sales of the iPhone would increase further. In the fourth quarter, the company saw an increase in the iPhones being sold in China by 32% with the new model, on a yearly basis. The increase was probably due 1to the penetration of the 4G networks in the country. China Mobile began the rollout of its 4G program which saw a heavy rise this year with its user base increasing to 40.9 million this September. However, Apple (NASDAQ:AAPL) noticed that around 80% of its models that were sold in China didn’t have a subsidy model on them and overall, the smartphone market has been seeing decreased prices as well as margins. However, Apple (NASDAQ:AAPL) is one company that has seen customers pay much more for its products. The average price that the iphone has is $602 for each unit which shows an increase of $42. The iPhone 6 Plus has a premium of $100 compared to the iPhone 6. The new iphones may help the company improve its margins because the iPhone 6 Plus incremental cost is likely to be low compared to the increase in ASP which will have an overall positive impact on the company thus creating another road to positive quarterly results in the future.