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Apple's numbers fall mostly in line with its own forecasts, analyst numbers

Another quarter is in the books, and Apple is once again rolling in cash. Apple generated revenue of $37.4 billion for fiscal Q3 and earnings of $1.28 per share. This translated into a record Q3 when it comes to profits, with the company raking in $7.7 billion. Analysts were expecting revenue of $37.99 billion and EPS of $1.23.
Apple issued guidance of $36 to $38 billion for the quarter, so these numbers are right in line with expectations.

Gross margins also ticked up compared to last year, rising from 36.9 percent to 39.4 percent. To go along with that info, Apple reported during its earnings call that the average selling price (ASP) for its Mac, iPod, iPhone, and iPad product lines were $1,255, $151, $561, and $444 respectively. The $444 figure for the iPad tells us that the iPad mini and iPad mini with Retina Display are accounting for the bulk of iPad sales.
“Our record June quarter revenue was fueled by strong sales of iPhone and Mac and the continued growth of revenue from the Apple ecosystem, driving our highest EPS growth rate in seven quarters,” said Apple CEO Tim Cook.

Apple CEO Tim Cook [Image Source: Fast Company]

“We are incredibly excited about the upcoming releases of iOS 8 and OS X Yosemite, as well as other new products and services that we can’t wait to introduce.”
During the quarter, Apple sold 13.3 million iPads, 35.2 million iPhones, and 4.4 million Macs. These compared to last year’s figures of 14.6 million, 31.2 million, and 3.8 million respectively.
iPad sales continue to be a sore point for Apple as we saw with the fiscal Q2 numbers. Apple has seen demand for its iPad weaken as newer, cheaper competition has entered the fray. In addition, the emergence of “phablet” devices have somewhat blunted the demand for tablet devices.
The iPhone numbers are up year-over-year, which is to be expected considering that Apple opened the floodgates to the Chinese market earlier this year. The iPhone numbers could have likely been even higher, but Apple fans are likely waiting for the larger screen iPhones (4.7” and 5.5”) to hit the market this fall.

Apple iPhone 6 render [Image Source: 9to5Mac]
Apple has already [internally] admitted that it has failed to deliver on bringing large-screen iPhones to its customers and it looks to right that wrong with the iPhone 6. So we’ll be looking forward to the fiscal Q4 numbers to see how iPhone sales stack up compared to last year.

Source: Apple

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RE: That's a lotta dough
By robinthakur on 7/23/2014 4:04:16 AM , Rating: 2
I was musing about why iPad growth is slowing this morning and I personally haven't refreshed my iPad or iPad mini this year, but probably will this new season or I might try a Surface Pro 3 and see if it's improved. I find my current iPads good enough currently for what I use them for. I put the weak sales down to a very low profile ad campaign for iPads currently ("What will your verse be") which is far from punchy or memorable, as much as it is tasteful. I enjoyed the campaign but it wouldn't make me pull the trigger on a purchase. It is clearly aimed at the more well-healed parts of the market, as a lifestyle accessory rather than a tablet computer and I think this approach won't win them many additional sales as this particular market already buy iPads and Macs in droves. They would be better off doing something more comparative that shows off the gorgeous design in a punchy way. This is a great shame as the hardware is incredible for the iPad air and the mini retina, and seems like a bit of an oversight from Apple treating it like an end of line that they don't need to advertise as strongly, much like the Apple TV. By contrast the "Gigantic" and "You're more powerful than you think" campaign really helped move inventory of the 5S before the 6 hits, and the ads for the iPhone 5C are ubiquitous to say the least. I think they need to be a bit smarter in their ad spend, though obviously, they do make the most profit from iPhones and the halo effect of owning an iPhone is hopefully the purchase of other Apple products. To be fair, the extremely underwhelming Galaxy 5 launch has probably helped Apple more than anything else. I upgraded from an IP5 to a galaxy 5 and the galaxy 5 is infinitely less responsive for some reason I can't quite fathom.

"Folks that want porn can buy an Android phone." -- Steve Jobs

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