Apple posts $37.4 billion in revenues, $7.7 billion profit for Q3 2014

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Date: Tuesday, July 22nd, 2014, 18:52
Category: Finance, iPad, iPhone, iPod, News

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Apple’s money train kept rolling into the third quarter.

Per Macworld, the company posted revenues of US$37.4 billion and a net profit of US$7.7 billion, making for a record June quarter for the company.

Those numbers were up from the third quarter of 2013, when Apple tallied US$35.3 billion in revenue and US$6.9 billion in net profit.

For the 2014 third quarter, Apple earned US$1.28 per diluted share, up from US$1.07 a diluted share the company earned in the year-ago quarter. Apple has declared a cash dividend of US$0.47 per share of the company’s common stock.


The earnings somewhat underperformed Wall Street’s estimate of US$37.99 billion in revenues, though the per-share earnings exceeded the US$1.23 forecast by analysts.

During the conference call, Apple announced that it had sold 35 million iPhones, generating US$19.75 billion in revenues compared to 31.2 million units generating $18.1 billion a year ago. Apple CEO Tim Cook specifically cited growth across the entry-priced, mid-tier, and lead iPhone categories—a slap, perhaps, at those who’ve said the iPhone 5c has been a failure.

Sales were down from the second quarter, though, when Apple sold more than 43 million iPhones and generated US$26 billion in revenue; unit sales dropped 19 percent since that second quarter. The third quarter, though, came later in the iPhone 5s and 5c product cycle, when attentive phone-owners begin preparing for the fall release of Apple’s next iPhone model.

The company also announced that it sold 18 percent more Macs in year over year comparison with 2013 and despite a shrinking PC market. The company sold 4.4 million Macs during the quarter, up from 3.7 million units in 2013. That translated to a 13 percent revenue increase since last year’s third quarter, to US$5.5 billion from $4.9 billion.

Apple saw a 7 percent increase in Macs sold from the previous quarter, from 4.1 million units, but also generated US$5.5 billion in sales during that quarter.

The iPad remained among the biggest sellers with the company moving 13.28 million units, down from both the second quarter, when 16.35 million units were sold, and from the third quarter of 2013, when 14.6 million units were sold. Revenue declined by 8 percent, year over year, from US$6.4 billion to US$5.9 billion.

The iPod line, while much diminished from its heyday, showed a small resurgence. The company sold 2.9 million units during the quarter—down from 4.6 million units a year ago, yes, but up 6 percent from the second quarter sales of 2.76 million units and helping the company clear US$442 million in sales for the third quarter, down 40 percent from US$733 million a year ago.

The company generated US$4.485 billion from iTunes, software, and services—up 12 percent from 2013, when revenues were US$3.99 billion, but down 2 percent from the second quarter 2014, when the sector generated US$4.573 billion. Officials said the rise was driven by a growth in app sales through iTunes and the Mac App Store: Total lifetime downloads from the App Store now exceed 75 billion.

Finally, Apple sold US$1.32 billion in accessories during the quarter, up 12 percent from US$1.179 billion a year ago, but down 7 percent from US$1.42 billion in the second quarter of this year.

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