Last year, Apple launched its smartphones iPhone 6 and iPhone 6 Plus. The company had enlarged the iPhone screen and added many interesting features to the latest version of its top-selling product. Soaring iPhone sales have shown that the company's decision was right.

According to reports, the consumer electronics company sold about 74.5 million iPhones in last three months of 2014. The record quarterly earnings have soared past Wall Street expectations.

During an earnings call on Tuesday, Apple Chief Executive Tim Cook said, "We see that we're appealing to new customers and people switching from Android. We're very bullish on the product". As per the reports, the total quarterly sales of the iPhone exceeded $50 billion. It was the first time when an iPhone exceeded that amount.

Cook said that the company has decided to begin shipping of the Apple Watch in April this year. According to him, many companies have been producing apps that run on the watch. The company decided to begin shipping of watches because there are a lot of people who want the watch, Cook added. Pricing details on the Internet-connected wrist piece remain unknown.

As per some financial analysts, the Apple Watch sale will not be a big moneymaker for the company, but it could fill the gap created by reduced sales of iPad and iPod. According to the reports, the Cupertino, California-based company has sold 18% fewer iPads in fourth quarter than in the same period in 2013. The company's other product category have seen revenue decline of about 5% from October through December compared with the year- earlier period.

Analysts had expected that the company would sell 51 million iPhones. In late September, the company had sold 10 million iPhones in just three days. Strong demand in countries such as Brazil and China helped the company to sell higher number of phones.