Notes from Apple Quarterly Earnings

Notes from Apple’s Quarterly Earnings

20131022-162209.jpg– 4.8 Million Macs Sold in Fiscal Quarter One
– 80% of all iOS users are now on iOS 7, making it the most popular mobile OS in the world.
– Apple remembered Mac’s 30 Year Anniversary last week
– $4.4 Billion made from iTunes
– iTunes hit new records
– App Sore passed 65 Billion Downloads
– 130,000 Chinese Apps
– $7 Billion from Apple Stores (Record)
– 4 New Stores Opened
– 166 Stores OutSide USA
– Average Revenue was $16.7 Million/store
– iBeacons Rolled Out in Quarter One
– Apple has $158.8 Billion in Cash

20131112-221645.jpg

Advertisements

Apple Reports Quarterly Earnings

Apple today announced its quarterly earnings.   The conference call officially begins at 5:00 EST/2:00 PST.  Listen live here.  We will bring you updated news as time progresses.  The company had a record breaking quarter.

AppleYearIn Review

Quarter 1 accounts for the holiday season, the most important quarter of the year.  Apple also reached a multi year deal with China Mobile in late 2013.

Apple’s Quarterly Earnings

iPhone and iPad Sales Drive Record Revenue and Operating Profit

CUPERTINO, Calif.–(BUSINESS WIRE)–Apple® today announced financial results for its fiscal 2014 first quarter ended December 28, 2013. The Company posted record quarterly revenue of $57.6 billion and quarterly net profit of $13.1 billion, or $14.50 per diluted share. These results compare to revenue of $54.5 billion and net profit of $13.1 billion, or $13.81 per diluted share, in the year-ago quarter. Gross margin was 37.9 percent compared to 38.6 percent in the year-ago quarter. International sales accounted for 63 percent of the quarter’s revenue.

“We love having the most satisfied, loyal and engaged customers, and are continuing to invest heavily in our future to make their experiences with our products and services even better.”

The Company sold 51 million iPhones, an all-time quarterly record, compared to 47.8 million in the year-ago quarter. Apple also sold 26 million iPads during the quarter, also an all-time quarterly record, compared to 22.9 million in the year-ago quarter. The Company sold 4.8 million Macs, compared to 4.1 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 February 13, 2014, to shareholders of record as of the close of business on February 10, 2014.

“We are really happy with our record iPhone and iPad sales, the strong performance of our Mac products and the continued growth of iTunes, Software and Services,” said Tim Cook, Apple’s CEO. “We love having the most satisfied, loyal and engaged customers, and are continuing to invest heavily in our future to make their experiences with our products and services even better.”

“We generated $22.7 billion in cash flow from operations and returned an additional $7.7 billion in cash to shareholders through dividends and share repurchases during the December quarter, bringing cumulative payments under our capital return program to over $43 billion,” said Peter Oppenheimer, Apple’s CFO.

Apple is providing the following guidance for its fiscal 2014 second quarter:

• revenue between $42 billion and $44 billion

• gross margin between 37 percent and 38 percent

• operating expenses between $4.3 billion and $4.4 billion

• other income/(expense) of $200 million

• tax rate of 26.2 percent

Apple will provide live streaming of its Q1 2014 financial results conference call beginning at 2:00 p.m. PST on January 27, 2014 at www.apple.com/quicktime/qtv/earningsq114. This webcast will also be available for replay for approximately two weeks thereafter.

China Mobile iPhones go on Sale

Apple on Friday began selling iPhones on China Mobile, the world’s largest mobile carrier. China Mobile boasts an incredible 700 Million+ users, more than Verizon, AT&T, T-Mobile, and Sprit combined.

Apple CEO Tim Cook was present at an Apple Store to offer signed iPhones. Days prior, both Cook and a China Mobile Executive showed their enthusiasm about the upcoming deal. The deal is expected to generate approximately 17 Million new users for Apple.

I’m personally really excited about this deal. There’s a ton of potential for Apple.

Breaking: Apple Signs Deal with China Mobile

Apple late yesterday signed a deal with China Mobile, the world’s largest cell phone carrier. The deal has been rumored for months.  The carrier has about 760 million customers – more than AT&T, Verizon, Sprint, and T-Mobile combined.  China Mobile iPhone activations are expected to raise apple’s income by at least 5% in 2014.

20131104-113427.jpg

As China Mobile begins to release 4G to its customers it will now be able to sell 4G enabled iPhones at its stores.

While the iPhone is popular in China, it is an expensive, premium phone.  As a result, many lower-income individuals may not have the opportunity to purchase the phone.

As Apple ventures into new areas, one might ask, “where next?”  Only time can tell…