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Apple has simply launched its financial Q3 2013 earnings – it reported $35.3 billion in revenue (slightly up 0.9 percent from $35 billion in the year-ago quarter) along with $6.9 billion in quarterly net revenue (down 21.6 percent from $8.8 billion in the year-ago quarter), standing for profits of $7.47 per share. Likewise to Q2 earnings, Apple published a year-over-year quarterly earnings decline (down 19.8 percent from EPS of $9.32).
Apple is still a money making equipment, but the company’s development has actually slowed. Just recently, the Cupertino-based company has tweaked its release cycle a bit. Almost the entire product was freshened over the last 3 months of 2012, pumping sales for Q1 2013 and leaving a void for the rest of the year. The business seems to follow the same pattern this year, aside from the MacBook Air.
As Zach Epstein says on Twitter, Samsung is now the most successful smartphone vendor on the planet, edging Apple with its $8.9 billion in earnings. Yet, Samsung just recently released its flagship phone, the Galaxy S4, while the iPhone 5 was released ten months back.
Apple still beat expectations
According to Bloomberg Businessweek, the consensus amongst analysts was for Apple to report incomes of $7.28 per share on $34.9 billion in revenue. Fortune expected almost the exact same with $34.94 billion in income and revenues of $7.29 per share.
The business’s money on hand somewhat increased from $145 billion to $146.6 billion.
The company’s money on hand somewhat increased from $145 billion to $146.6 billion. It continues to be one of Apple’s major asset. It allows the company to invest even more time experimenting and preparing new products behind the curtains without having to bother with its resources. Apple beat all those numbers, even if it means generating less revenue.
‘We’re especially happy of our record June quarter iPhone sales of over 31 million and the strong development in profits from iTunes, Software application and Services,’ composed CEO Tim Cook in the revenues launch. “We’re really excited about the upcoming launches of iOS 7 and OS X Mavericks, and we’re laser-focused and striving on some remarkable brand-new products that we’ll introduce in the fall and throughout 2014,” he continued.
Guidance from its last profits release anticipated between $33.5 billion and $35.5 billion in income and gross margin between 36 percent and 37 percent. While the company made use of to be timid about its assistance, this time around it was spot on – it probably will not scare investors away.
iPad sales are down and old iPhones are more popular than ever
Breaking out the numbers, devices sales were expectedly slow this quarter. It was the first time we have seen an annual reduce in iPad sales, at 14.6 million, yet iPhone sales topped 31 million representing 20 percent development year over year. Mac and iPod sales were slightly down both quarterly and yearly, which is something Apple appeared prepared for as its various other iProducts begin to cannibalize the older series of items. Check out even more about this in our separate post.
Over the past couple of weeks, lots of analysts reported an industry-wide stagnation in smartphone sales. Apple keeps offering the iPhone 4 and the iPhone 4S at a lower price, and it hurts the business’s profit. Horace Dediu mentions on Twitter that the average iPhone rate is now about $580 compared with $613 last quarter. That’s one of the reasons why revenue is down but income still up year over year.
See more charts about Apple’s no-growth quarter.
Q4 2013 and beyond
For Q4 2013, Apple’s own support projections between $34 billion and $37 billion in revenue (compared with $36 billion in Q4 2012) with a gross margin in between 36 and 37 percent (a flat gross margin).
During Q2, Apple did not release any product and expectations were pretty reduced for the company. This time around, the company unveiled a couple of items during the conventional and long-anticipated WWDC keynote. The MacBook Air was updated as well as the Mac Pro. However the previous was released just a few weeks before the end of the financial quarter that ended on June 30, while the latter does not even have a launch date yet.
And naturally, the business has not freshen the iPhone and the iPad because September and October 2012. In other words, Q3 was an additional quarter without any big brand-new product. Cook prompted that it would hold true throughout the latest earnings call, saying that brand-new items would come this fall. His quote in the profits release verifies that. Apple unveiled a radically brand-new iOS 7. It provided commentators hope that exciting brand-new products are right around the corner. When it comes to product innovation, Q4 2013 will be decisive with long awaited launches.
On the stock market side, Apple (NASDAQ: AAPL) has actually experienced a pretty good month of July up until now. After breaking under $400 a share at the end of June, shares have actually been trading over $420 for the last couple of days. Apple shares are presently trading up 4.16 percent in after-hours trading, showing that investors were pleased with today’s earnings.