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Apple Q2 2013 earnings: 37.4 million iPhones and 19.5 million iPads sold, $9.5 billion net profit


Apple’s second quarter earnings are always moderately lower than the booming holiday season three months earlier, but the company has consistently shown itself capable of year over year growth. This year the company is reporting healthy revenues of $43.6 billion, with a net profit of $9.5 billion (all numbers USD). While revenue is up over $4b from the same period a year ago, the company’s profit dipped just over $2 billion.

Still, the company reported sales of 37.4 million iPhones and 19.5 million iPads in the quarter, up 6.5% and 65% respectively year over year. Things seem to be slowing down on the iPhone front, as the iPhone 4S boosted Q2 2012 sales 88% over the previous period in 2011. iPad sales, buoyed by the low-cost iPad mini, don’t seem to be slowing down. While this isn’t an indicator that the iPhone has peaked — it is still growing, after all — it may put Apple on notice that a low-cost variant (other than the iPhone 4 and 4S) needs to be introduced.

The company is also increasing its quarterly dividend by 15% to $3.05/share, and has a plan in place to return $100 billion in cash through an extensive stock buyback program by the end of 2015. While Apple has nearly $150 billion in cash and liquid assets available to it, the company’s share price has dipped to under $400 from its peak of $702.10 in September.

The iPhone still makes up the bulk of the company’s revenue at 42%, but at 16% the iPad is growing, taking share away from the company’s iPod line, which is still going strong at 23% revenue share. Considering Apple didn’t release a single new product in the second quarter, these results are very impressive, and exceeded analysts’ expectations by about $1 billion in revenue.

Update: According to the press release there’s some exciting things on the horizon. Tim Cook, Apple’s CEO, said “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.” Possibly a new iPhone, new iPad, maybe even the iWatch. ^IH

Source: Apple

  • Guest

    wow, that’s a lot of money. If it was actually spent on innovation… never mind this is apple im talking, wrong company to think of when talking innovation.

  • jdjd

    And Google isn’t hard at work? Lol, apple already lost, R.I.P Crapple

  • Zed

    And yet, no reporting on the fact that for the first time in a long time Apple failed to meet sales expectations in Q1.

  • Super_Deluxe

    Apple: “Today we’re announcing what the world has been waiting for, that amazing thing we’ve promised. Introducing… The all new, revolutionary IPHONE 5S!.. Featuring a quad core processor, 720p gorilla glass 2 display with 341ppi, and an amazing 1500mAh battery! And…wait for it..wait for it.. iOS 6.5!!”

  • guest

    Read an article on apple in the nyt. They said the idea well has run dry, I say it died, its name was jobs. Samsung is mopping the floor with apple. The phone srom Samsung 2 generations ago, the s2 and the s2x are a better phone than the iPhone 5. Not to mention the s3 and s4, note and note 2. Face it, the fruit is now rotten!

    • Rio

      See, people claim that Steve was this idea well. And if in fact he was so great, do you really think he left absolutely no idea/blueprints behind?

      It is not that the well is dry, it is the time is not right. Apple is good at disrupting markets and because of the trend they have set of blowing away peoples mind, everyone expects the best of them.

      They cant overcome the laws of physics, give it time and they will come back

    • Zany

      I think Steve was good at disrupting markets. Once his blueprints are gone, things won’t be so easy for Apple. They placed themselves on the pedestal and claim to be perfect yet the last two years has shown they are just like everyone else with the exception that they are not taking big chances. Oh wait, they do but when they do, they tend to flop pretty bad on launch and slowly get better over time. This is not an innovative company anymore, that ship sailed 2 years ago.

    • Sweet

      Not true. Just look at what they’ve been patenting. They have lots of ideas and they have been innovating, they just haven’t been putting any of those ideas and innovations into their products. Instead, they’ve been stick to the one-feature-plus-lots-of-little-tweaks formula. I don’t know what the hell they’re waiting for, but this is the year they have to release a bunch of new features.

  • Rich

    I’m not an Apple fan or a Samsung fan, but these results are quite impressive, all things considered.

    Honestly, I’m not sure there’s too much they can do on the hardware front outside of an aesthetic design change. We’re kind of at a point where all screens are good, processors are all fast, etc. Although, battery life is something ALL smartphones need to improve upon.

    On the software side of things, if Apple introduces an Android-esque desktop and widgets in their next iOS update, they could easily be back in the thick of things.

    • Sweet

      The next iPhone will have a built-in fingerprint sensor. There’s also a company that has created a fingerprint scanner that can be added as a layer to a phone screen. They demoed it at WMC this year and are trying to get smartphone makers to add it to their phones. There’s also flexible screens, that could be useful if done right and not gimmicky. I believe Apple also has an exclusive license to use liquid metal tech in phones. Though, I have no idea what they’ll be doing with that. On the software side, the next iPhone will have a revamped UI and improved security. Don’t count on widgets, though.

    • Derek Pulla

      Did anybody not see the huge dip Apple’s stock took? As business insiders stated last year, Apple already hit its plateau, it’s all down for them at this point. The iPhone sucks.

    • Sweet

      I see a 1.87% increase.

    • Sweet

      And in after-hours trading, I’m seeing a 0.54% drop. That’s far from huge.

  • TheShader

    A new iPhone or iPad is NOT “some Amazing New Hardware” by any stretch of the immagination and an iWatch would be a perfecting of someone else’s product (either Sony’s Android watch or the Pebble).
    Granted, those items may have seemed ‘amazing’ to some at their initial launch, but any refresh to these lines is at best surprising or impressive, but far from amazing now.

    • guest

      Well that’s what apple is best at, taking others products and calling them their own. And then suing the original inventor of the said product. Sleeze business tactics.

    • Rio

      Apple takes products that were already out there and makes them useable for the market.

      Show me one Smartphone prior to the iPhone that was anywhere near to the original iPhone and then show me one tablet prior to the iPad that wasnt clunky and laggy like hell.

      Yes windows had the tablet long before Apple did but it was horrible designs and they all ran bloated full windows software.

      It is amazing how apple took the simple concept of a mobile OS and dominated the market with it.

    • HelloCDN

      So how come with better hardware, my Samsung Galaxy S 3 still manages to lag more than my 2-years old iPhone 4? And please don’t tell me because the system is more advanced…

    • KrispyInTO

      Lag and scrolling smoothness are 2 different things. The s3 is alot faster then an iphone 4 at doing things.

  • beyond

    Go APPLE!!!!!!!!!!!!!!!

  • Steve wozniak

    Steve jobs was the media man, not the inventor or builder. Apple is only making money because of excellent marketing strategies, not for true tech innovation. If you truly believe that Apple is on the front line of innovation your sadly mistaken.

  • RIP Steve J

    “Our friends(Microsoft) up north spend over five billion dollars on research and development and all they seem to do is copy Google and Apple.”
    “I wish developing great products was as easy as writing a check. If that was the case, Microsoft would have great products.”

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