Apple releases Q3 2013 numbers, cites $35.3 billion in revenue, $6.9 billion profit

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Date: Wednesday, July 24th, 2013, 06:17
Category: Finance, News, retail

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There wasn’t massive growth, but the numbers were still good.

Per Macworld, Apple reported sales of US$35.3 billion, with net profit at US$6.9 billion for its third fiscal quarter. That translated to earnings of US$7.47 per diluted share. Apple’s revenue marked a record for the June quarter, ticking up 1 percent from the $35 billion Apple posted in last year’s third quarter. Still, profits fell 22 percent year-over-year, down from US$8.88 billion in 2012. Apple also reported a drop in profit during its fiscal second quarter of 2013.

With a tiny increase in revenue but a drop in profit, you’d rightly conclude that Apple’s gross margin dropped: For the quarter, it was 36.9 percent, versus 42.8 percent on the year-ago quarter. That’s because Apple’s most popular products now have lower margins than the top-sellers a year ago.

The company also says it has issued US$18.8 billion in cash to shareholders through dividends and buybacks.

While Apple generally keeps a tight lid on future product announcement, company officials did reiterate a point made during its second-quarter earnings announcement in April—that the company plans to roll out new products starting this fall and into the next year. “We are laser-focused and working hard on some amazing new products,” CEO Tim Cook said in an statement accompanying Apple’s earnings announcement.”

Apple says it sold 32.2 million iPhones—a record for the June quarter. That’s up from 26 million iPhones in the year-ago period. For the U.S., iPhone sales rose 51 percent year-over-year, Apple says.

The picture was less rosy for iPad sales, but Apple has a perfectly reasonable explanation for the 14 percent drop in tablet sales from last year’s third quarter. A year ago, Apple introduced the third-generation iPad and enjoyed a full quarter’s worth of sales to the tune of 17 million units. This quarter, sales fell to 14.6 million iPads.

Still, Apple has plenty of reason to remain bullish on the iPad. Company chief financial officer Peter Oppenheimer said that the iPad ranked tops in a 2013 U.S. tablet satisfaction survey by JD Power and Associates. And during the quarter, the company inked a deal with the Los Angeles Unified School District, the second largest district in the U.S., to roll out iPads to 640,000 students.

In fact, the iPad got the bulk of the credit for a strong quarter of sales to U.S. schools. According to Oppenheimer, the last three months generated the highest quarterly revenue ever for Apple’s U.S. education institution business.

Mac sales also fell in the quarter, down 7 percent from last year to 3.8 million units. Still, Oppenheimer pointed out that the 3.8 million Macs sold beat Apple’s own expectations. And Apple’s sales still were ahead of the total PC market, which saw sales contract by 11 percent according to estimates from research firm IDC. By Apple’s math, the Mac gained market share during the quarter.

The Mac was one of the few product lines to see any changes during the quarter, with Apple updating its MacBook Air lineup at the beginning of June by adding new Intel processors. Company executives had little to say about any impact those new laptops had on overall Mac sales, but Oppenheimer did call it the most successful MacBook Air launch to date, adding that customer response was great.

But during the call, executives implied that there were better things to come. Oppenheimer noted that June’s Worldwide Developers Conference included previews of both the Mac Pro and the next version of OS X, code-named Mavericks.

The iTunes Stores—which includes the App Store, Mac App Store, iBookstore, and the music, movies, and TV sections of iTunes—generated $4.3 billion in billings, Oppenheimer said, culminating in the best week and best month ever for App Store. That translated to quarterly revenue of US$2.4 billion, up 29 percent year over year. Total quarterly revenue from iTunes, software, and services generated US$4 billion in revenue.

Oppenheimer said that Apple now has over 320 million iCloud accounts, and 240 million Game Center accounts.

As for brick-and-mortar retail efforts, the Apple Store saw revenue of US$4.1 billion for the quarter, virtually unchanged from the year-ago quarter. Oppenheimer reported that Apple saw 16,000 visitors per store each week.

For the quarter, Apple had an average of 405 stores, with average revenue per store at US$10.1 million, down US$1 million from the year-ago quarter. Apple opened six stores across five countries during the quarter, giving it 408 stores around the globe; 156 of those outlets are outside the U.S.

The company plans to open nine new stores during the September quarter, giving it 27 new openings during the 2013 fiscal year. It’s not just about new stores, however: Apple says that it relocated four of its stores to more appealing spots; it will complete 23 such relocations before the end 2013 fiscal year in September.

Where stockholders are concerned, the company’s Board of Directors has announced another cash dividend, this one at US$3.05 per share of common stock, payable on August 15 to any shareholder as of August 12.

For the next quarter, Apple is predicting revenue between US$34 billion and US$37 billion, with gross margins between 36 and 37 percent. That sales figure would put Apple’s performance in line with the US$36 billion in revenue it reported in the fourth quarter of 2012. For the coming quarter, Apple also predicts operating expenses will be between US$3.9 billion and US$3.95 billion, with a tax rate of 26.5 percent.

Stay tuned for additional details as they become available.

Apple to hold Q3 earnings conference call on Tuesday, July 23rd

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Date: Tuesday, July 2nd, 2013, 06:21
Category: Finance, News

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The numbers tell the truth.

Per MacNN, Apple will hold its next quarterly earnings call with investors on Tuesday, July 23, where it will discuss its fiscal third-quarter results. According to its own estimates, it expects to report between US$33.5 billion and US$35.5 billion, a drop from the previous quarter but a realistic figure in light of no refreshed iPad or iPhone, the two primary drivers of Apple’s income. While the latest MacBook Air revision has garnered significant praise for its various improvements, it emerged at the very tail end of the quarter and thus didn’t influence sales.

Possibly affecting sales of other Apple products is the expected drop in sales that comes ahead of new iOS device models. Apple has already said that new products will be coming this fall, which is taken to mean the latest iPhone, iPad and possibly some entirely new devices — including a long-rumored Apple television or smartwatch. Another keenly-anticipated release is the acceptance of the new iOS 7, not to mention the long-overdue Mac Pro overhaul, which will test how professional users will adapt to the re-designed machine. Primarily, however, investors will be watching to see if Apple can continue its remarkable iOS platform US sales growth in the face of competition and a lack of any new product in the quarter.

In the previous quarter, Apple saw both good news and bad: revenues were up, as were iPad and iPhone sales (above analysts’ predictions), but Mac sales were basically flat and net profit was down slightly for the first time in a decade, a trend that is expected to have continued over the past three months. Analysts have reported that Apple has ordered fewer iPhones for the upcoming quarter, signalling that it expects further erosion of iPhone sales ahead of its eventual announcement of the next model.

Margins are expected to be around 36 percent, with operating expenses bubbling just under US$4 billion. The conference call is schedule to take place at 2PM Pacific/5PM Eastern on July 23.

Stay tuned for additional details as they become available.

Apple reports Q2 2013 profit of $9.5 billion, revenues of $34.6 billion

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Date: Tuesday, April 23rd, 2013, 14:50
Category: Finance, iPad, iPad mini, iPhone, News

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It’s 18% lower than it was last year, but it’s still US$9.5 billion in the bank…

Per AppleInsider, Apple on Tuesday said second quarter profits fell roughly 18% to US$9.5 billion — or US$10.09 per diluted share — despite record second quarter sales of US$43.6 billion — the first year-over-year decline in earnings for the one-time tech darling in nearly a decade.

The results for the three-month period ended March 30, 2013 compare to revenue of US$39.2 billion and net profit of US$11.6 billion, or US$12.30 per diluted share, in the year-ago quarter. Gross margin was 37.5 percent, approximately 100 basis points lower than the 47.4 percent reported in the year-ago quarter, as consumers gravitated to more affordable, lower-margin products like the iPad mini.

During the quarter, Apple sold 37.4 million iPhones and 19.5 million iPads, compared to 35.1 million iPhones and 11.8 million iPads in the year-ago quarter. The company also said it sold just under 4 million Macs, compared to 4 million in the year-ago quarter. Overall, international sales accounted for 66 percent of the quarter’s revenue.

“We are pleased to report record March quarter revenue thanks to continued strong performance of iPhone and iPad,” said Tim Cook, Apple’s CEO. “Our teams are hard at work on some amazing new hardware, software and services, and we are very excited about the products in our pipeline.”

Looking ahead to the current June quarter, Apple provided following guidance:
- Revenue between US$33.5 billion and US$35.5 billion.

- Gross margin between 36 percent and 37 percent.

- Operating expenses between US$3.85 billion and US$3.95 billion.

- Other income/(expense) of US$300 million

- Tax rate of 26%.

“Our cash generation remains very strong, with $12.5 billion in cash flow from operations during the quarter and an ending cash balance of $145 billion,” said Apple CFO Peter Oppenheimer.

For Apple, Tuesday’s results mark the first year-over-year decline in profits since the first quarter of 2003 when the “early 2000s recession” began to set in stateside.

Stay tuned for additional details as they become available.

Apple Q2 2013 financial results due today

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Date: Tuesday, April 23rd, 2013, 07:08
Category: Finance, Fun, News

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Ladies and gentlemen, Apple’s Q2 2013 results will be released starting at 2PM EST today.

Stay tuned to the PowerPage for updated coverage of the press event.

In the meantime, prior to worrying about finances, your portfolio and what bills may happen to be due, relax and remember that the Martians from “Sesame Street” were awesome on every conceivable level.



Apple to announce Q2 2013 earnings statement on April 23rd

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Date: Tuesday, April 2nd, 2013, 06:45
Category: Finance, News

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It’s about that time again.

Per The Unofficial Apple Weblog, Apple updated its investor relations page on Monday to reveal that the company will post its earnings results for Q2 2013 on Tuesday, April 23. Per usual, an earnings conference call will follow at 5 p.m ET. Typically, this is where CEO Tim Cook and CFO Peter Oppenheimer go over Apple’s earnings in further detail and answer an assortment of questions from analysts.

Naturally, all eyes will be on Apple and its perceived ability to maintain the tremendous growth it has enjoyed over the past few years.

Stay tuned for full coverage of the event throughout the day.

BlackBerry posts $98 million quarterly profit, sells 1 million Z10 smartphones

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Date: Thursday, March 28th, 2013, 06:36
Category: Finance, News

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Maybe there’s some life left in the old girl…

Per AppleInsider, BlackBerry on Thursday said demand for its new flagship Z10 handset helped produce a net income of US$98 million — a minor surprise during a transitional quarter for the previously spiraling company.

While the Canadian smartphone maker, formerly known as Research in Motion, surprised by posting a profit, its quarterly revenue of US$2.7 billion was still seen as a disappointment. In addition, the company only sold 6 million total smartphones, while a million of those were its new Z10.

A poll of Wall Street analysts by Thomson Reuters had forecast BlackBerry to post a loss of about 29 cents per share. In the same quarter a year ago, the company had lost US$118 million.

Still, the Z10 sales were a relatively positive sign for the company’s revamped BlackBerry 10 platform. That device launched a few weeks before the end of the quarter, and only in Canada, the U.K. and United Arab Emirates. It began expanding to the U.S. last week.

While BlackBerry was once a dominant player in the smartphone market, major shifts in recent years have made it a fringe competitor. For example, Apple sold nearly eight times as many iPhones last quarter as BlackBerry sold smartphones in its latest print, demonstrating the gap between the two companies.

As of the end of the company’s fourth fiscal quarter of 2013, which concluded on March 2, BlackBerry had about US$2.9 billion in cash, cash equivalents, short-term and long-term investments.

Stay tuned for additional details as they become available.

Apple posts $54.5 billion in revenue, $13.1 billion profit for Q1 2013 financial returns

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Date: Wednesday, January 23rd, 2013, 21:21
Category: Apple TV, Finance, iPad, iPhone, iPod, News, retail

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It was a profitable quarter, but there were setbacks compared to last year.

Per Macworld, for the company’s first fiscal quarter of 2013, Apple posted revenue of US$54.5 billion and a net profit of US$13.1 billion. Revenue rose 17.7 percent from the 2012 first quarter, while profit was flat year-over-year. Apple earned US$13.81 per share, down half-a-percentage point from the US$13.87 it earned in the year-ago quarter.

Apple’s quarterly performance was in line with Wall Street expectations. Analysts were looking for sales of around US$54.7 billion for the quarter and earnings per share of US$13.42.

iPhone sales hit a record for the quarter ended Dec. 29, 2012, up 29 percent year over year to 47.8 million phones. That was within the 46 to 47 million range analysts were looking for. Apple says it sold 3.7 million phones a week during the quarter, compared to weekly sales of 2.6 million during the 2012 quarter.

iPhone sales growth was strong in all sales regions, Oppenheimer said, but particularly in Greater China, which includes China, Taiwan, and Hong Kong. Sales doubled year over year in that region.

Oppenheimer credited the “tremendous popularity” of iPhone 5 for driving Apple’s phone business—a not so subtle slap at rumors of sluggish iPhone 5 sales. Breaking with Apple’s typical practice of not addressing rumors, Cook did dismiss reports of iPhone order cuts.

iPad sales also set a new high-water mark, with 22.9 million tablets sold, compared to 15.4 million last year. That translates to more than 1.7 million iPads sold per week, a 60 percent increase from the year-ago quarter, according to Oppenheimer.

As is its custom, Apple didn’t break out sales figures between iPad models—it currently offers the iPad 2, a fourth-generation model of its full-sized iPad, and the iPad mini. Oppenheimer called the smaller version of Apple’s tablet a “tremendous hit.”

For the quarter, Apple sold more than 75 million iOS devices.

The company sold 12.7 million iPods, down about 21 percent compared to the year before. The iPod touch was (as always) popular during the holidays, and still accounts for more than half of all iPods sold. The company claims that the iPod owns more then 70 percent of the market for MP3 players.

iTunes generated US$2.1 billion in revenue, and the company established new all-time quarterly sales records for music, movies, and apps. The company added music stores in 56 countries, for a total of 119 around the world. The App Store sold 2 billion downloads in December; cumulative downloads have surpassed 40 billion, generating US$7 billion in payments to developers.

Apple made brief mention of its Apple TV offering, noting that it sold more than 2 million settop boxes during the holiday season quarter. That’s a 60 percent increase from the prior year.

Revenue from Apple’s retail effort was US$6.4 billion—an all-time high and a 5 percent increase over the 2012 first quarter. The company says that revenue is largely due to iPad and iPhone sales.

Apple opened 11 new stores, including four in its Greater China region. It expects to invest a bit less than US$1 billion in its retail stores this fiscal year.

Apple once again noted that the cumulative downloads have now surpassed 40 billion for the App Store, generating US$7 billion for developers. There were 2 billion downloads in the month of December alone.

Unusually, Apple did not break out the percentage of customers who purchased Macs at Apple Stores who were new to the platform. (In the past, that company has hovered consistently around 50 percent.) That omission could be a byproduct of the dip in Mac sales during the quarter.

For the second quarter ending in March, Apple expects sales to come in between US$41 and US$43 billion. That number would be slightly ahead of the US$39.2 billion in revenue the company logged in the 2012 second quarter. Apple is no longer giving analysts a forecast on earnings per share for the quarter, instead providing its expectations for gross margin and operating expenses in addition to revenue. (Apple expects gross margin to be between 37.5 and 38.5 percent for the upcoming quarter while operating expenses will come in at US$3.8 and US$3.9 billion.)

Apple Q1 2013 results to be released later today

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Date: Wednesday, January 23rd, 2013, 08:06
Category: Announcement, Finance, News

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Ladies and gentlemen, Apple will be holding a conference call to announce its earnings for the first quarter of 2013 at 2 PM PST/5 PM EST. Stay tuned to the PowerPage for details as they become available and additional information can be found over at investor.apple.com.

Apple to hold Q1 2013 earnings conference call on Wednesday, January 23rd

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Date: Thursday, January 3rd, 2013, 07:39
Category: Finance, News

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It’s nice to get the numbers back and see how you’re doing.

Per AppleInsider, Apple announced on Wednesday that it will reveal results for the first fiscal quarter of 2013 on Jan. 23, which will be followed by an earnings conference call expected to cover initial statistics for the holiday season as well as performance numbers for the iPad mini.

The announcement was posted to Apple’s Investor Relations web site and noted the conference call will start on Wednesday, Jan. 23 at 2:00 p.m. Pacific/5:00 p.m. Eastern. A live audio stream of the call will be available at this link.

In the fourth quarter of 2012, Apple saw a 25 percent boost in profits thanks to strong sales of 44 million iDevices, including 26.9 million iPhones, for the three month period. Revenue for fiscal 2012 reached over US$156 billion on sales of more than 200 million iOS devices, 18 million Macs, and 35 million iPods.

For the upcoming report, Apple forecast revenue of US$52 billion and diluted earnings per share of about US$11.75 for the quarter ending in December. The multitude of new product launches and product line refreshes, like the iPad mini, iPhone 5 and newly redesigned iMac line, are expected to drive down gross margins that could equate to a decline of 400 basis points for the three month period.

Stay tuned to the PowerPage for up to the minute coverage on the earnings come the 23rd.

Apple purchases Color Labs’ talent base for indeterminate price

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Date: Friday, October 19th, 2012, 08:05
Category: Finance, News, Software

Your favorite computer company bought up the talent, not the office supplies (including the trusty coffee maker)

Per All Things D, Apple didn’t buy social video startup Color, but it did acquire its engineering team of about 20 employees for as much as $5 million.

Disputing a rumor that surfaced on Wednesday claiming that Apple had bought Color, Liz Gannes of All Things D revealed on Thursday that Apple instead “acquired” Color’s engineering team. The employees were said to have been picked up for somewhere between US$2 million and US$5 million.

That would mean that earlier claims that Apple had bought Color for “double-digit millions” were incorrect. Instead, Apple made a relatively small talent acquisition of about 20 personnel.

“Apple is not buying Color’s technology, intellectual property, domain names or liabilities,” Gannes said. “Those are being left with the company, which still has considerable cash in the bank — something like US$25 million — and is going to be wound down.”

A flurry of rumors and misinformation related to Color were attributed to “bad blood” that has apparently formed between Color employees, company CEO Bill Nguyen, ex-employees, investors, and even Apple itself.

Founded by Bill Nguyen and Peter Pham in 2011, Color Labs was at the center of some controversy after netting US$41 million in a pre-launch funding round, a massive investment compared to the usual US$1 million in seed money seen by most comparable start-ups. The company released a photo-sharing app, though the initiative failed to draw users, prompting Pham to exit three months after launch and Chief Product Officer DJ Patil to do the same one month later.

Nguyen changed strategies and created a new video-sharing app that allows users to record and post 30-second silent video to Facebook, a direction that netted Color a deal with Verizon in May.

Stay tuned for additional details as they become available.