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Apple reports earnings of $6.9 billion on sales of 31.2M iPhones, 14.6M iPads, 3.8M Macs

post #1 of 66
Thread Starter 
Apple said Tuesday that third-quarter profits fell roughly 20 percent to $6.9 billion, or $7.47 per diluted share, on relatively flat revenues of $35.4 billion for the three-month period ended June 29th, 2013.

iPhone 5 with iOS 7


The results compare to revenue of $35 billion and net profit of $8.8 billion, or $9.32 per diluted share, in the year-ago quarter. Gross margin was 36.9 percent compared to 42.8 percent in the year-ago quarter, while international sales accounted for 57 percent of the quarter's revenue.

Apple sold 31.2 million iPhones, a record for the June quarter, compared to 26 million in the year-ago quarter. The Cupertino-based company also sold 14.6 million iPads during the quarter, compared to 17 million in the year-ago quarter. Mac sales came in at 3.8 million units, down 200,000 units from the 4 million reported for the same quarter last year, while iPod sales continued their inevitable decline, falling 32% to just 4.5 million units.

"We are especially proud of our record June quarter iPhone sales of over 31 million and the strong growth in revenue from iTunes, Software and Services," said Apple chief executive Tim Cook. "We are really excited about the upcoming releases of iOS 7 and OS X Mavericks, and we are laser-focused and working hard on some amazing new products that we will introduce in the fall and across 2014."

Apple's Board of Directors has declared a cash dividend of $3.05 per share of the company's common stock. The dividend is payable on August 15, 2013, to shareholders of record as of the close of business on August 12, 2013.

"We generated $7.8 billion in cash flow from operations during the quarter and are pleased to have returned $18.8 billion in cash to shareholders through dividends and share repurchases," said Apple Chief Financial Operator Peter Oppenheimer.

As part of the report, Apple said it's also providing the following guidance for its fiscal 2013 fourth quarter:
  • revenue between $34 billion and $37 billion
  • gross margin between 36 percent and 37 percent
  • operating expenses between $3.9 billion and $3.95 billion
  • other income/(expense) of $200 million
  • tax rate of 26.5%

Apple will provide live streaming of its Q3 2013 financial results conference call beginning at 2:00 p.m. PDT today. AppleInsider will provide full coverage.
post #2 of 66

Turns out the Verizon numbers were indicative of a good iPhone quarter after all. Surprising that analysts were way off on iPad sales.

post #3 of 66
Good for Apple. Not so much for AAPL.
post #4 of 66
$6.9 Billion USD profit in 3 months = WIN!
post #5 of 66
Wow Apple dropped. That's not good.
post #6 of 66
Quote:
Originally Posted by Jetz View Post

Good for Apple. Not so much for AAPL.

Why?

 

Quote:
Originally Posted by AdonisSMU View Post

Wow Apple dropped. That's not good.
 

Really?

post #7 of 66
Quote:
Originally Posted by Jetz View Post

Good for Apple. Not so much for AAPL.

The stock is up 4.5% after-hours, when I checked a couple of minutes ago.

post #8 of 66

 Not a good quarter at all... It's because it's an off year for contract users and those who had the option to trade in a new phone probably didn't upgrade to the 5.

 

They could start charging for iOS 7 updates but for a phone worth 300 to make and sell at 680... good luck finding carriers and users.

iTunes Radio - Apple TV with Wifi AC - Gold Anodized Aluminum iPhone - Mac Pro: September - November 2013

 

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iTunes Radio - Apple TV with Wifi AC - Gold Anodized Aluminum iPhone - Mac Pro: September - November 2013

 

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post #9 of 66

Considering the ASP for an iPhone is pretty similar to an iPad, isn't being plus on one and down on the other sort of a wash?

 

Looks like EPS came in a tad higher. Overall, estimates looked pretty accurate.

post #10 of 66
Quote:
Originally Posted by AdonisSMU View Post

Wow Apple dropped. That's not good.

 

 

Huh? Stock is up. : After Hours: 439.60 +20.61 (4.92%)

 

iPad number and Q4 revenue outlook looks a little light, but all in all good news everywhere else.

I'm not a pessimist. I'm an optimist, with experience.
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I'm not a pessimist. I'm an optimist, with experience.
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post #11 of 66
Quote:
Originally Posted by darkdefender View Post

 Not a good quarter at all... 

What are you talking about!? Apple met/beat expectations. The stock is up substantially after-hours.

 

The only slight miss -- if that -- was that iPad numbers were down by 2.4M. But given that a new one is coming in the next couple of months for the same price and people are waiting, the fact that they sold so many is actually good news.

post #12 of 66
Quote:
Originally Posted by AdonisSMU View Post

Wow Apple dropped. That's not good.


I think you were watching the pre-report daily trading numbers.  You need to keep your finger on the pulse and check the post-report, after hours numbers.  Up almost 5%.

post #13 of 66
Quote:
Originally Posted by darkdefender View Post



 Not a good quarter at all... It's because it's an off year for contract users and those who had the option to trade in a new phone probably didn't upgrade to the 5.

They could start charging for iOS 7 updates but for a phone worth 300 to make and sell at 680... good luck finding carriers and users.
How come the stock is up almost 5% in after hours trading if it was a bad quarter?
post #14 of 66

I wonder if their estimate for gross margins in Q4 is any indication of a possible iPhone Lite?

post #15 of 66
Quote:
Originally Posted by anantksundaram View Post

What are you talking about!? Apple met/beat expectations. The stock is up substantially after-hours.

The only slight miss -- if that -- was that iPad numbers were down by 2.4M. But given that a new one is coming in the next couple of months for the same price and people are waiting, the fact that they sold so many is actually good news.
Also the iPad 3 would have impacted the June quarter last year, and the mini & iPad 4 last quarter. So it's not really an apples to apples comparison.
post #16 of 66
Why are iPad sales down? Android tablets, windows 8 tablets or market is saturated?
post #17 of 66
Quote:
Originally Posted by ShAdOwXPR View Post

Why are iPad sales down? Android tablets, windows 8 tablets or market is saturated?

None of the above.

post #18 of 66
Quote:
Originally Posted by AdonisSMU View Post

Wow Apple dropped. That's not good.

Doesn't really matter what they report. Some analyst will spout off about delays, production issues etc and the stock will drop.

When in truth, their numbers aren't that far off from last year when there was a new iPad etc. that should be seen as good. And would be if it was anyone but Apple
post #19 of 66
Quote:
Originally Posted by anantksundaram View Post

None of the above.

 

Well enlighten us.  Why are iPad numbers down?

post #20 of 66
Quote:
Originally Posted by ShAdOwXPR View Post

Why are iPad sales down? Android tablets, windows 8 tablets or market is saturated?

As Rogifan mentioned, we are waiting for the iPad 5. Apple will get our money a little bit later this year...

post #21 of 66
Quote:
Originally Posted by Jetz View Post

Good for Apple. Not so much for AAPL.

 

Quote:
Originally Posted by AdonisSMU View Post

Wow Apple dropped. That's not good.


After-hours trading has AAPL shooting up quite well.

post #22 of 66
Originally Posted by darkdefender View Post

... Not a good quarter at all... It's because it's an off year for contract users [yadda yadda blah blah] 

... good luck finding carriers and users.

 

Not a good troll at all.  It's because there isn't any real bad Apple news that you can repeat ad nauseam.

Good luck finding emotional hot buttons and insulting catch phrases.

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Sent from my iPhone Simulator

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post #23 of 66
Quote:
Originally Posted by darkdefender View Post

 Not a good quarter at all... It's because it's an off year for contract users and those who had the option to trade in a new phone probably didn't upgrade to the 5.

 

They could start charging for iOS 7 updates but for a phone worth 300 to make and sell at 680... good luck finding carriers and users.

 

The phone is "worth" only $300?

 

LOL

 

 

Why did the iPhone increase 20% YoY then?

post #24 of 66
Quote:
Originally Posted by delreyjones View Post

Well enlighten us.  Why are iPad numbers down?
No new product this quarter. Last year June quarter the retina 3rd gen iPad was brand new product.
post #25 of 66
Quote:
Originally Posted by ShAdOwXPR View Post

Why are iPad sales down? Android tablets, windows 8 tablets or market is saturated?

 

There was this thing called the iPad 3 which was released in the year-ago quarter, which probably skewed things higher. There was no new spring iPad this year.

post #26 of 66
Quote:
Originally Posted by Rogifan View Post

Also the iPad 3 would have impacted the June quarter last year, and the mini & iPad 4 last quarter. So it's not really an apples to apples comparison.

I think it's fair to remind everyone the iPad itself hasn't been redesigned for nearly 3 product cycles -- couple that with a new version plus iOS 7 which I'm running -- personally I'm betting Apple stock is a buy right now -- and that's with nothing new coming out 1smile.gif)
post #27 of 66
Quote:
Originally Posted by gijoeinla View Post


I think it's fair to remind everyone the iPad itself hasn't been redesigned for nearly 3 product cycles -- couple that with a new version plus iOS 7 which I'm running -- personally I'm betting Apple stock is a buy right now -- and that's with nothing new coming out 1smile.gif)

3 product cycles?

post #28 of 66
Sounds like the channel inventory was much higher last year June quarter than it was this quarter. So in terms of sell through iPad was only down 3%.
post #29 of 66

These are solid results and it is not a surprise that the stock rose after hours.   They beat EPS and revenue - there is nothing to complain about there.  I'm very glad to see this, as I was expecting EPS and revenue declines.

 

Here's hoping the stock has some legs tomorrow.  Today would have been a good day to buy for the bump.


Edited by tt92618 - 7/23/13 at 2:38pm
post #30 of 66
the stock price is for suckers. Up or down it a fu***** game. The money is coming in by the boat loads. Sorry wall street with all those effing derivatives in the trillions you'll have to eventually pay out. Oooop!
I forgot, you don't have a printing press. Ouch.
post #31 of 66
Quote:
Originally Posted by ankleskater View Post

3 product cycles?

Sure... iPad 2, 3 and 4 are virtually identical visually.

iPad numbers are down simply because the 3 was released withing this quarter a year ago, driving up sales. Add to that many (myself included) are waiting for the 5 or new mini to refresh. So of course numbers are down, and will skyrocket next quarter.

Good stuff.

post #32 of 66
Quote:
Originally Posted by Rogifan View Post

Sounds like the channel inventory was much higher last year June quarter than it was this quarter. So in terms of sell through iPad was only down 3%.

 

Do you have the numbers for iPhone?

 

11M seems kinda high.

post #33 of 66
Quote:
Originally Posted by Pendergast View Post

Do you have the numbers for iPhone?

11M seems kinda high.
I'm not sure if Cook mentioned it. If he did I didn't hear it.
post #34 of 66
Quote:
Originally Posted by Rogifan View Post

Sounds like the channel inventory was much higher last year June quarter than it was this quarter. So in terms of sell through iPad was only down 3%.


Yes...many seem to missing this VERY important point.  It's actually decent momentum in a "stale" quarter leading up to a new product cycle.

post #35 of 66
Quote:
Originally Posted by delreyjones View Post

 

Well enlighten us.  Why are iPad numbers down?

 

Like I told before the earnings, last year we had the new iPad 3 in that quarter.  People were hoping the mini would completely compensate, it was too bullish imo. Apple could also be losing a bit of market shares on the tablet space. 

 

I wish Apple would spread there launches, like doing the big and small iPads 6 months apart. Also october launches means the next quarter wont include any new products.

post #36 of 66
Quote:
Originally Posted by herbapou View Post

Like I told before the earnings, last year we had the new iPad 3 in that quarter.  People were hoping the mini would completely compensate, it was too bullish imo. Apple could also be losing a bit of market shares on the tablet space. 

I wish Apple would spread there launches, like doing the big and small iPads 6 months apart. Also october launches means the next quarter wont include any new products.
If you look at the sell through iPads were only down 3%. But I agree, hopefully next year they'll spread out product launches more rather than releasing everything in the holiday quarter.
post #37 of 66

Am I the only one who thinks Apple failed in Greater China?

Europe showed the expected decline due to the economic crisis.

But the decline in China came unexpected for me. What did I miss?

post #38 of 66
Stock still up a little over 3% after Q&A. Will be intersting to see where it ends up tomorrow.
post #39 of 66
That's a helluva lot of iPhones . . .
post #40 of 66
The headline is a LITTLE misleading since Apple also sells Apps, accessories, AppleCare contracts and content sales and rentals. so, they don't just sell iOS and OS X hardware.
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