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Apple reports earnings of $7.5B on sales of 33.8M iPhones, 14.1M iPads & 4.6M Macs

post #1 of 96
Thread Starter 
Apple said Monday that fourth-quarter profits slipped roughly 8.5 percent to $7.5 billion, or $8.26 per diluted share, on revenues of $37.5 billion -- better than most Wall Street analysts had been anticipating.

iPhone 5 with iOS 7


The results compare to revenue of $36 billion and net profit of $8.2 billion, or $8.67 per diluted share, in the year-ago quarter. Gross margin came in at 37 percent compared to 40 percent in the year-ago quarter. International sales accounted for 60 percent of the quarter's revenue.

Apple sold 33.8 million iPhones, a record for the September quarter, compared to 26.9 million in the year-ago quarter. It also sold 14.1 million iPads during the quarter, compared to 14 million in the year-ago quarter. Mac sales came in at 4.6 million, down slight from 4.9 million in the year-ago quarter.

"We're pleased to report a strong finish to an amazing year with record fourth quarter revenue, including sales of almost 34 million iPhones," said Apple Chief Executive Tim Cook. "We're excited to go into the holidays with our new iPhone 5c and iPhone 5s, iOS 7, the new iPad mini with Retina Display and the incredibly thin and light iPad Air, new MacBook Pros, the radical new Mac Pro, OS X Mavericks and the next generation iWork and iLife apps for OS X and iOS."

On average, Wall Street analysts were expecting Apple to report earnings of $7.93 per share on revenue of $36.84 billion, driven largely by sales of roughy 31 million iPhones, 14.5 million iPads and 4.6 million Macs.

Apple's Board of Directors has declared a cash dividend of $3.05 per share of the Company's common stock, payable on November 14, 2013, to shareholders of record as of the close of business on November 11, 2013.

"We generated $9.9 billion in cash flow from operations and returned an additional $7.8 billion in cash to shareholders through dividends and share repurchases during the September quarter, bringing cumulative payments under our capital return program to $36 billion," added Apple Chief Financial Officer Peter Oppenheimer.

Apple provided the following guidance for its fiscal 2014 first quarter:
  • revenue between $55 billion and $58 billion

  • gross margin between 36.5 percent and 37.5 percent

  • operating expenses between $4.4 billion and $4.5 billion

  • other income/(expense) of $200 million

  • tax rate of 26.25 percent

Apple will provide live streaming of its Q4 2013 financial results conference call beginning at 2:00 p.m. PDT today. AppleInsider will provide full coverage.
post #2 of 96
Doomed

2014 27" Retina iMac i5, 2012 27" iMac i7, 2011 Mac Mini i5
iPad Air 2, iPad Mini 2, iPhone 6 Plus, iPhone 6, iPod Touch 5
Time Capsule 5, (3) AirPort Express 2, (2) Apple TV 3

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2014 27" Retina iMac i5, 2012 27" iMac i7, 2011 Mac Mini i5
iPad Air 2, iPad Mini 2, iPhone 6 Plus, iPhone 6, iPod Touch 5
Time Capsule 5, (3) AirPort Express 2, (2) Apple TV 3

Reply
post #3 of 96
So Apple beats estimates and yet they're down over 2% after hours supposedly because of lower margins. Yet I keep reading articles about how Apple needs cheaper iPhones and iPads. How exactly would that increase margins?
post #4 of 96
Love this marketwatch headline:
Apple beats estimates, issues solid guidance; shares lower
post #5 of 96
Great buying opportunity on Apple stock right now as idiots are dumping stock against very optimistic numbers.
post #6 of 96
Wonder what Mac sales would have been like had they not delayed the rMBP refresh just for the sake of Mavericks, which is evidently causing input device lockups anyway. I, like many others, was waiting with cash in hand for the 13" refresh back in June.
post #7 of 96
So AAPL disappoints once again? Are they still doomed? Inquiring pundits want to know.
post #8 of 96
So basically Wall Street is dumping the stock because margins are down 3% compared to the year ago quarter. And yet Amazon can have another quarter where they make no money and the stock jumps 9%. 1rolleyes.gif
post #9 of 96
Quote:
Originally Posted by helicopterben View Post
 

Lot of Bulltards all across the stock boards makes me think, this stock can tank despite the beat :err: 

 

Its a win-win situation for bulls no matter what the stock does. If it falls, buy more :p 

 

http://forums.appleinsider.com/t/160434/earnings-preview-apples-sept-quarter-results-are-all-about-iphone-for-wall-street

post #10 of 96
Quote:
Originally Posted by Rogifan View Post

So basically Wall Street is dumping the stock because margins are down 3% compared to the year ago quarter. 

You know this for a fact?

post #11 of 96

So they managed to hit 4.6 million Mac sales after all.

 

Egg on my face. Colour me corrected. And impressed. 

post #12 of 96

AAPL p/e got crazy compressed before the run to $700. Same thing happening here. One day it will compress to a stupidly low level and there will be another crazy run. At least that's what I'm holding out for. 

post #13 of 96
Quote:
Originally Posted by Rogifan View Post

So Apple beats estimates and yet they're down over 2% after hours supposedly because of lower margins. Yet I keep reading articles about how Apple needs cheaper iPhones and iPads. How exactly would that increase margins?

 

They may have beat the estimates but the fact is that **profit** is down. Again. A year-over-year quarter decrease of $700 million is no joke. They need to do something to stop that decreasing **profit**. I'm surprised AAPL is only down 2%.

 

Edit: Fixed revenue to be profit. My apologies.


Edited by NexusPhan - 10/28/13 at 2:07pm
post #14 of 96
Quote:
Originally Posted by Rogifan View Post

So basically Wall Street is dumping the stock because margins are down 3% compared to the year ago quarter. And yet Amazon can have another quarter where they make no money and the stock jumps 9%. 1rolleyes.gif

 

Yes because AAPL is a mature company and revs don't mean as much anymore and important is on margin and how much profit they can generate. AMZN on the other hand, is all about increasing revs right now. Over the next few years, AMZN is the much better investment stock market wise.

post #15 of 96
Quote:
Originally Posted by StruckPaper View Post

You know this for a fact?
No, but that's what I'm seeing on the financial live blogs.
post #16 of 96
Quote:
Originally Posted by NexusPhan View Post
 

 

They may have beat the estimates but the fact is that revenue is down. Again. A year-over-year quarter decrease of $700 million is no joke. They need to do something to stop that decreasing revenue. I'm surprised AAPL is only down 2%.

Yup. and the problem is their decreasing margins...

post #17 of 96
Quote:
Originally Posted by NexusPhan View Post

They may have beat the estimates but the fact is that revenue is down. Again. A year-over-year quarter decrease of $700 million is no joke. They need to do something to stop that decreasing revenue. I'm surprised AAPL is only down 2%.
But if the estimates accounted for this and they beat the estimates I don't see why the stock would be down. Presumably this would be factored in, no?
post #18 of 96
Quote:
Originally Posted by NexusPhan View Post
 

 

They may have beat the estimates but the fact is that revenue is down. Again. A year-over-year quarter decrease of $700 million is no joke. They need to do something to stop that decreasing revenue. I'm surprised AAPL is only down 2%.

Is lying fun?  They increased revenues from $36 billion to $37.5 billion, an increase of 4%.  What are you talking about?  

post #19 of 96
Quote:
Originally Posted by Tony Stark View Post
 

Yup. and the problem is their decreasing margins...

 

 Margin is not gonna be an easy fix for Apple. They already have some of the highest selling prices and lowest per unit cost in the industry. Already at some serious volumes and have already flexed some muscle over their suppliers. I'm sure some much smarter than I people over at Apple are all over this. I don't think Apple is as stubborn as they appear to be to the public.

post #20 of 96
This is all programmed trading. It does seem that Apple stocks always tanks after they report their earnings. Why, don't know. But, if I were programming a auto-trading application, I'd take my profits in Apple, as the stocks decrease (since I know they will), then buy them back later for less than I sold them for.
post #21 of 96
Quote:
Originally Posted by Tony Stark View Post

Yes because AAPL is a mature company and revs don't mean as much anymore and important is on margin and how much profit they can generate. AMZN on the other hand, is all about increasing revs right now. Over the next few years, AMZN is the much better investment stock market wise.

Ok how many quarters and years now have we heard the same story about Amazon? Every quarter they post another loss and all the pundits excuse it away saying its about future profits as if Amazon can just flip a switch and the profit spigot will magically start flowing. It's BS.
post #22 of 96
Quote:
Originally Posted by CoreAndExplore View Post
 

Is lying fun?  They increased revenues from $36 billion to $37.5 billion, an increase of 4%.  What are you talking about?  

 

Sorry. I meant net profit. Should have been pretty easy to figure out what I meant considering it was in the title and first line of the article. And you've proven my point even more. Their revenue is up and net profit has decreased. Raise the red flags internally Apple.

post #23 of 96
Quote:
Originally Posted by CoreAndExplore View Post
 

Is lying fun?  They increased revenues from $36 billion to $37.5 billion, an increase of 4%.  What are you talking about?  

Think he meant Net Revs...

post #24 of 96
The press wants Apple to sell their tablets for less money like android/Amazon, stop outsourcing, sell phones to the low-end of the market, pay more taxes, and increase profit margin. What happened to simple arithmetic?
post #25 of 96
Quote:
Originally Posted by NexusPhan View Post

 Margin is not gonna be an easy fix for Apple. They already have some of the highest selling prices and lowest per unit cost in the industry. Already at some serious volumes and have already flexed some muscle over their suppliers. I'm sure some much smarter than I people over at Apple are all over this. I don't think Apple is as stubborn as they appear to be to the public.
Perhaps Wall Street needs to reset their margins expectations. It seems like they're still expecting margins like Apple had in that one blockbuster quarter where all the stars aligned. Seems to me that was an outlier more than the norm.
post #26 of 96
Quote:
Originally Posted by Tony Stark View Post
 

 

Yes because AAPL is a mature company and revs don't mean as much anymore and important is on margin and how much profit they can generate. AMZN on the other hand, is all about increasing revs right now. Over the next few years, AMZN is the much better investment stock market wise.

 

Fans of the company need to disconnect the stock price from the business. Apple is firing on all cylinders, making and selling tons of great products, satisfying its millions of customers, innovating, moving forward. It exceeds in every metric there is to look at. That the stock price is stuck in a range says more about investors than the company. In the Wall Street crap game that is the stock market it’s all about quick profits, pump and dump, scorched earth policy and dismembered carcasses laying in a pile. As Apple fans we don’t want Apple doing what Wall Street wants, or what Carl Icahn wants. That would be bad for Apple and its customers.

 

Let the trolls crow about market share, stock prices, and all the crap they think makes Apple look bad. We already know they can spin anything into doom and gloom. They’re already doing it over at c|net and here.

post #27 of 96
Quote:
Originally Posted by NexusPhan View Post

Sorry. I meant net profit. Should have been pretty easy to figure out what I meant considering it was in the title and first line of the article. And you've proven my point even more. Their revenue is up and net profit has decreased. Raise the red flags internally Apple.

And yet Wall Street wants Apple to sell even cheaper iPhones and iPads. So they want cheaper products but increased profits and margins. How does that math work?
post #28 of 96
Quote:
Originally Posted by Rogifan View Post


Perhaps Wall Street needs to reset their margins expectations. It seems like they're still expecting margins like Apple had in that one blockbuster quarter where all the stars aligned. Seems to me that was an outlier more than the norm.

 

Very true. That's why their stock value was realigned. As long as the decreasing profit doesn't continue, I wouldn't be worried. I'll have to take a deeper look at their financial statements when I get my hands on them. A lot of factors to consider here.

post #29 of 96
Quote:
Originally Posted by NexusPhan View Post
 

 

Very true. That's why their stock value was realigned. As long as the decreasing profit doesn't continue, I wouldn't be worried. I'll have to take a deeper look at their financial statements when I get my hands on them. A lot of factors to consider here.

Also, no one can take into account potential margin increases (or decreases) in the "future" products that Tim keeps talking about (and doing so on the conference call now)

post #30 of 96
Quote:
Originally Posted by Rogifan View Post

So Apple beats estimates and yet they're down over 2% after hours supposedly because of lower margins. Yet I keep reading articles about how Apple needs cheaper iPhones and iPads. How exactly would that increase margins?

You can have good margins on cheaper products. Go to the grocery store and look at the price of razor blades, lot and lots of margin in each package sold there.

The idea behind a cheaper product is to secure a larger share of the market.
post #31 of 96
Quote:
Originally Posted by NexusPhan View Post
 

 

Sorry. I meant net profit. Should have been pretty easy to figure out what I meant considering it was in the title and first line of the article. And you've proven my point even more. Their revenue is up and net profit has decreased. Raise the red flags internally Apple.

 

I'm sorry that you think it's necessary for others to have to intuit what you must mean in your incorrectly-worded posts.  You also said revenue is going down TWICE in the same post. 

 

Besides, gross margins have been projected to decline to and then stabilize in the mid-30% range by wallstreet for some time now.  If this is news to you then I'm not surprised that you confused revenues with profit.

post #32 of 96

Excellent numbers, a new record for Apple for the Sept quarter, which obviously means that the stock will tank. 

post #33 of 96
Quote:
Originally Posted by NexusPhan View Post

Very true. That's why their stock value was realigned. As long as the decreasing profit doesn't continue, I wouldn't be worried. I'll have to take a deeper look at their financial statements when I get my hands on them. A lot of factors to consider here.
I still think the stock is undervalued. But I'm in it for the long game and I think Apple will have the last laugh,
post #34 of 96
Stocks are down because end December guidance is lower than expected. Not because of YoY profits.
post #35 of 96
Quote:
Originally Posted by lkrupp View Post

So AAPL disappoints once again? Are they still doomed? Inquiring pundits want to know.

The usual reasons:
1. Four inch screen is too small.
2. Innovation died with Steve.
4. Steve Jobs just took credit for others' innovations (contradicts #2)
5. OLED is the future of display tech.
6. No built-in DVD drive
7. Apple doesn't care about hardware enthusiat Pro users.
8. Obsession with thinness
9. I've been an Apple user since 1978, but (insert random criticism)
10. No internal expansion

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply
post #36 of 96
FIRE TIM COOK!!! Apple is truly doomed and Apple shareholders are cursed. I don't want to hear another word about how great a company Apple is or how many iPhones are being sold. I knew this would happen because Google and Amazon are sucking the life out of Apple and Tim Cook doesn't have a clue. One whole year has gone by since Apple's horrific stock collapse and Apple still can't figure out how to beat earnings while sitting on $150 billion in reserve cash. Appalling. As a long-time shareholder I have to hang my head in shame as the House That Steve Built gets uglier by the quarter. I'm willing to bet the holiday quarter will be no better. Apple keeps trying to make more money with hardware and with Android's huge market share sitting on Apple's face, the company is going nowhere fast. Damn you, Tim Cook.
post #37 of 96
Quote:
Originally Posted by NexusPhan View Post
 
Quote:
Originally Posted by Rogifan View Post

So Apple beats estimates and yet they're down over 2% after hours supposedly because of lower margins. Yet I keep reading articles about how Apple needs cheaper iPhones and iPads. How exactly would that increase margins?

 

They may have beat the estimates but the fact is that **profit** is down. Again. A year-over-year quarter decrease of $700 million is no joke. They need to do something to stop that decreasing **profit**. I'm surprised AAPL is only down 2%.

 

Edit: Fixed revenue to be profit. My apologies.

That was pretty much baked into all the estimates for a while, and hence prices. Indeed, a glance at the Analyst Estimates section of, say, www.finance.yahoo.com would have shown you that Apple's earnings for the year were expected to be ~10% lower for FY13 compared to FY12.

 

Basically, Apple came in roughly in line with expectations: marginal beats on most fronts as well as with guidance, with higher iPhone numbers awash with lower iPad numbers. The <2% drop after-hours is not huge. It could be back up to today's levels by the time it opens tomorrow.

 

I view this earnings announcement as 'largely in holding pattern' relative to expectations.

post #38 of 96
Oh I'm so surprised. HA HA HA. I tried to tell anyone that would listen. I'll say it again, AAPL will continue to trade sideways (at best), as long as they continue issuing their stupid dividend. I dont' care if they invent an iSpaceship, and sell a gazillion of them. BA HA HA HA.
post #39 of 96
Your title is wrong. It's not Apple reports earnings of $7.5 Billion, but reports Net Profits of $7.5 Billion.
post #40 of 96

Wall Street guidance was less than what Apple produced. The drop I imagine is to take a loss now, rather than to take a bath later in Q1 2014 when Apple continues to crush the competition.

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