Apple’s Quarterly Earnings Reveal Solid Growth – 33.8 Million iPhones and 14.1 Million iPads Sold this Past Quarter
Today, Apple held its quarterly earnings call for the fourth quarter of 2013. The company met its predicted guidance and actually surpassed it by 0.5 percent. The company posted record sales of the iPhone with 33.8 million, a record for the September quarter. Apple sold 26.9 million iPhones for the same quarter last year. Additionally, the company sold 14.1 million iPads this quarter, up from 14.1 million during the same quarter last year. Interestingly, 60 percent of the fourth quarter’s revenues were from international sales.
According to Apple’s CFO Peter Oppenheimer, Apple is doing great in customer satisfaction with 96 percent satisfaction for iPhone users and 99 percent satisfaction in iPad users. Plus, customer loyalty is 90 percent. Apple noted that iPhone users activate their devices more than 53 percent more often than Android device users.
Oppenheimer also noted that the iPad exceeded the company’s September expectations with a strong showing in “back to school” sales. He pointed to various District-wide implementations of iPad programs across the nation. The company saw record $1 billion in revenue in the education market. “Our share of tablets in education is 94 percent, said cook.
“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,” said Oppenheimer.
CEO Tim Cook has a positive outlook on the future of Apple “We had a strong finish to an amazing year,” said Cook. “Apple’s business is stronger than ever. He pointed out that Apple is winning in the areas the company believes is most important, customer satisfaction, usage, and customer loyalty.
“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,” said Cook.
When asked about why anyone would care about a 64-bit processor on a phone, Cook mentioned that the A7 processor chip is the “front end of a long road map.” Cook also talked about future product launches. He reminded listeners that Apple plans on launching exciting new products throughout 2014. He also responded to a question regarding products in new categories by saying that the company has a great group of developers and designers that he believes can use their skills to create products in new categories in the future.
When it comes to upcoming sales predictions, Apple is holding off on giving numbers. However, Cook mentioned that the iPad Air is the best tablet the company has ever made. “I think it’s going to be an iPad Christmas,” Cook said.
Apple Reports Fourth Quarter Results
iPhone Sales Grow 26% to Establish New September Quarter Record
CUPERTINO, California—October 28, 2013—Apple® today announced financial results for its fiscal 2013 fourth quarter ended September 28, 2013. The Company posted quarterly revenue of $37.5 billion and quarterly net profit of $7.5 billion, or $8.26 per diluted share. These 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 was 37 percent compared to 40 percent in the year-ago quarter. International sales accounted for 60 percent of the quarter’s revenue.
The Company sold 33.8 million iPhones, a record for the September quarter, compared to 26.9 million in the year-ago quarter. Apple also sold 14.1 million iPads during the quarter, compared to 14 million in the year-ago quarter. The Company sold 4.6 million Macs, compared to 4.9 million in the year-ago quarter.
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 November 14, 2013, to shareholders of record as of the close of business on November 11, 2013.
“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 Tim Cook, Apple’s CEO. “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.”
“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,” said Peter Oppenheimer, Apple’s CFO.
Apple is providing 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