Apple Posts Q3 Results »

Tim Cook:

We are especially proud of our record June quarter iPhone sales of over 31 million and the strong growth in revenue from iTunes, software and services. We are really excited about the upcoming releases of iOS 7 and OS X Mavericks, and we are laser-focused and working hard on some amazing new products that we will introduce in the fall and across 2014.

The high points of the results filing include:

  • $35.3 billion in revenue and $6.9 billion in profit. Revenue was basically flat over last year, but profits were down 22 percent.
  • An all-time June quarter high of 31.2 million iPhones sold, up from 26 million in the year-ago quarter. 20 percent higher than last year.
  • 14.6 million iPads sold, compared to 17 million in the year-ago quarter.
  • 3.8 million Macs sold, down from 4 million a year ago.

Additionally, Apple has declared a cash dividend of $3.05 per share of the company’s common stock. The dividend is payable on August 15, 2013.

(If numbers aren’t your thing be sure to check out MacStories’ charts or this PDF published by Apple a few moments ago.)

The iPhone news is great for the company. The Mac’s slippage should not be surprising, given that the entire desktop PC market is crashing. Matthew Panzarino notes that the iPad is probably falling in to the sales style that PCs used to inhabit. That makes sense to me, as the iPad has replaced the PC in many, many circles. Factoring in Apple’s shift to a non-spring release cycle for new models, my guess is that the iPad will soon bounce back.

Here are some quotes and tidbits from the company’s live call:

  • CFO Peter Oppenheimer: “iPhone sales ahead of expectations, and particularly pleased with strong year-over-year growth, in developed and emerging markets.”
  • iPhone 5 is the most popular model of iPhone currently for sale.
  • iPhone grew 66% year over year in Japan.
  • Kantar measured 93% loyalty rate among iPhone lawyers, and iPhone continues to lead in customer experience.
  • iPad ranked number 1 in 2013 U.S. tablet satisfaction survey by JD Power. iPad leads tablet web usage share in U.S. and Canada.
  • Oppenheimer: “Global computer market contracted by 11% in June quarter, so Macs gained share.”
  • New Mac Pro coming later this year, built in the US. Mac Pro and OS X Mavericks will be available in the fall.
  • US education market generated highest quarterly revenue in history, fueled by iPad sales, not Macs.
  • 60,000 movies and over 230,000 TV episodes on the iTunes store. 1 billion TV episodes and 390 million movies downloaded in total.
  • iOS App Store just turned five. 50 billion downloads with developers earning over $11 billion.
  • Apple killing Android in the enterprise: Good Technologies found iPhone 5 was the most frequently activated device of any kind. iPads represented 88 percent of all tablet activations.
  • $4.1 billion quarter for Apple Retail, on par with last year. 408 stores open worldwide, with 156 of them outside the US. 16,000 visitors per store, per week.
  • $146.6 billion in cash plus short-term and long-term securities. $106 billion is off-shore.
  • Apple spent $4 billion to retire 9 million additional shares.
  • Tim Cook: “We think that if we make great products, the financial metrics will come.”