Apple’s Fiscal Third Quarter Earnings Report: Highlights

24 Jul


The figures for Apple’s fiscal third quarter earnings are out and, as usual, provide some interesting glimpses into how the company is currently doing with each major product line. For anyone who might have missed the earnings conference, here are five of the biggest takeaways:

  • Apple’s gross revenue and profit in Q2 are $35.5 billion USD and $6.9 billion USD, respectively. The revenue figure, nearly equal to the numbers from the same period a year ago, is close to what the Cupertino company and Wall Street analysts had been expecting earlier. The profit, on the other hand, is down by more than $2 billion USD (a near 20% decrease year on year), and will likely generate a lot of concern among investors.
  • The Q2 iPhone shipments showed noticeable improvements in 2013 compared to 2012, rising from 26M to 31.2M units. A part of the reason for the growth is the devices’ improved sales and shipment performances in emerging markets such as China, Russia, Brazil, India, and Thailand. CEO Tim Cook and CFO Peter Oppenheimer have made special mentions of India, where the iPhone sales are said to have increased by a whopping 400%, the largest experienced in any emerging country.
  • Mac shipments are slightly down compared to last year, dropping from 4 million units to 3.8 million units; A similar situation can be seen with the iPads, whose Q2 shipment this year is 14.6 million compared to last year’s 17 million (a 16% year on year decrease). The decline in iPad shipment numbers is attributed by CFO Peter Oppenheimer to the changes in Apple’s channel inventory—which is said to have been reduced by 700 thousand units—as well as the fact that the iPad 3 was released late in the third quarter of 2012.
  • The iPhones have performed well in developed countries like the US, UK, and Japan. According to Oppenheimer, while the iPhone 5 remains the most popular model in the iPhone line, both the iPhone 4 and iPhone 4S are doing relatively well within the global market.
  • Cook and Oppenheimer are both optimistic about the future state of things, and have confidence that iOS 7 and OSX Mavericks will be received positively by consumers. They indicated also that the company will be releasing “amazing products” in the Fall and “across 2014.” These are likely to include the new Mac and Mac pro computers, updated iPod devices (Nano, touch, etc), iPhone 5S and iPhone Lite, and the fifth generation iPad. Rumors suggest that the iPad mini 2 and iWatch could be delayed to next year due to production issues.
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