Following Apple’s announcement of its Q2 2013 earnings and new cash program, the company is hosting an earnings call to discuss the results. The company’s CEO and CFO, Tim Cook and Peter Oppenheimer, also typically stick around for a question and answer session. We’ll be live blogging the proceedings after the break (Image via AP):
As planned, Apple has announced its Q2 2013 earnings results.
Apple® today announced financial results for its fiscal 2013 second quarter ended March 30, 2013. The Company posted quarterly revenue of $43.6 billion and quarterly net profit of $9.5 billion, or $10.09 per diluted share. These results compare to revenue of $39.2 billion and net profit of $11.6 billion, or $12.30 per diluted share, in the year-ago quarter. Gross margin was 37.5 percent compared to 47.4 percent in the year-ago quarter. International sales accounted for 66 percent of the quarter’s revenue.
The Company sold 37.4 million iPhones in the quarter, compared to 35.1 million in the year-ago quarter. Apple also sold 19.5 million iPads during the quarter, compared to 11.8 million in the year-ago quarter. The Company sold just under 4 million Macs, compared to 4 million in the year-ago quarter.
Apple reported revenues for Q2 of $43.6 billion, which beats Apple’s estimates for the quarter of between $41 and $43 billion. This revenue compares to a revenue of $39.2 billion in the year-ago Q2. Apple also reported net profit of $9.5 billion, or $10.09 per diluted share
Apple sold 37.4 million iPhones, 19.5 million iPads, just under 4 million Macs, and 5.6 million iPods. This compares to 35.1 million iPhones, 11.8 million iPads, and 4 million Macs, sold in the year-ago Q2 2012 quarter.
Apple CEO Tim Cook on the results:
“We are pleased to report record March quarter revenue thanks to continued strong performance of iPhone and iPad,” said Tim Cook, Apple’s CEO. “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.”
Apple CFO Peter Oppenheimer as well:
“Our cash generation remains very strong, with $12.5 billion in cash flow from operations during the quarter and an ending cash balance of $145 billion,” said Peter Oppenheimer, Apple’s CFO.
Apple’s guidance for next quarter (Q3 2013) is revenue between $33.5 billion and $35.5 billion
Apple will hold a conference call regarding today’s announcement. We will have live coverage at 5 PM EST/ 2 PM PST.
Here’s Apple’s press release announcement:
Update: Microsoft provided us with the following comment noting that “people interested in buying additional storage will do so via the web versus in the app.” In other words, it doesn’t look like Apple will be getting a cut of additional storage purchased, but users won’t be able to do so via the iOS app:
We worked with Apple to create a solution that benefited our mutual customers. The SkyDrive app for iOS is slightly different than other SkyDrive apps in that people interested in buying additional storage will do so via the web versus in the app.
Back in December we heard reports, later confirmed by Microsoft, that Apple was delaying updates to its SkyDrive iOS app. The delays were apparently over a dispute regarding whether or not Apple should receive its usual 30% cut for additional storage that users purchased through the app.
While there is no word yet on exactly how Microsoft and Apple resolved the issue, Microsoft announced today on its Windows SkyDrive blog that a new update is available for the iOS app via iTunes starting today.
Version 3.0 of the app, the first update to SkyDrive for iOS since June, brings support for iPhone 5 and iPad mini, a revamped user experience, enhancements to photo features such as the ability to download full res photos to iPad and iPhone, and much more: Read more
Research firm IDC is out today with its latest report on the smart-connected device market, and it includes worldwide shipments of desktop PCs, notebook PCs, smartphones, and tablets. IDC predicted the market in total grew 29.1-percent year over year in 2012, crossing 1 billion units shipped and hitting a total value of $576.9 billion. According to the report, Apple significantly closed the gap on Samsung during the last quarter of the year. It jumped from 15.1-percent in Q3 to 20.3-percent of unit shipments in Q4 2012. That brings the company up right behind market leader Samsung, which dropped slightly from 21.8-percent to 21.2-percent in the fourth quarter:
Looking specifically at the results for the fourth quarter of 2012 (4Q12), combined shipments of desktop PCs, notebook PCs, tablets, and smartphones was nearly 378 million and revenues were more than $168 billion. In terms of market share, Apple significantly closed the gap with market leader Samsung in the quarter, as the combination of Apple’s iPhone 5 and iPad Mini brought Apple up to 20.3% unit shipment share versus 21.2% for Samsung.
Not surprisingly, Apple dominated Samsung when it came to revenue share. It took in 30.7-percent of the market compared to just 20.4-percent for Samsung by revenue:
On a revenue basis for the fourth quarter, Apple continued to dominate with 30.7% share versus 20.4% share for Samsung.
Apple’s increase is likely thanks to strong iPad and iPad mini sales, as growth in the market was “largely driven by 78.4-percent year-over-year growth in tablet shipments.” IDC expected tablet shipments to outgrow desktop PCs by the end of this year, while the tablet market could surpass the portable PC market in 2014 and provide Apple with even more opportunity to outgrow Samsung for total connected smart device shipments this year and next: Read more
Fortune reported that Apple is likely to achieve record revenues in Q2—but the first fall in its earnings in a decade.
Apple’s revenues are expected to grow from $41 billion to $43 billion, another record for Q2, but margins are expected to have fallen substantially from a peak of just over 47 percent last year to ‘between 37.5 and 38.5 percent’ this year.
Margins tend to fall with new products, due to high initial investments and reduced yields when pushing the limits of what can be achieved (as with the new iMacs), and it’s this falling margin that has impacted Apple’s earnings per share…
Asymco’s Horace Dediu has estimated that Apple’s iTunes business, initially intended only to cover its costs as a way of driving hardware sales, now earns the company annual profits of a cool $2 billion.
What started as just a music store now sells music, video, books, iOS software, and Mac software. Revenues have grown five-fold in 7 years, with total sales approaching $5 billion a quarter and notching up an estimated 23 billion transactions a year.
As previously announced, today Apple is reporting its Q1 2013 earnings results. There is much uncertainty going into today’s call with Apple shares down significantly in recent months to roughly $500 since hitting a high of over $700 per share in September. With the iPhone 5 landing in a total of 100 countries last month, as well as iPad mini making its way to new markets, Wall Street estimates Apple will report between 47.5 million and 53 million iPhones sold and iPad sales between 23 million and 25 million. Compare that with Apple’s Q1 numbers last year: 37 million iPhones and 15.43 million iPads sold. Earlier this week Verizon reported 6.2M iPhone activations for the quarter, around half of which were iPhone 5 sales.
We’ll be providing blow-by-blow coverage of the earnings call in our live blog below at 2 PM Pacific/5 PM Eastern time. Stay tuned to 9to5Mac.com’s homepage for additional coverage:
Head below for updates… Read more
Analytics firm Distimo is out today with the full results of its year-end 2012 app analytics report (via Fortune). While Apple is still the clear winner in terms of revenue, Google Play showed significant growth in the last four months. Its daily revenue grew 43 percent in 20 major markets. Apple’s growth was smaller, increasing daily revenue by 21 percent, but Distimo’s numbers show Google still has a long way to go:
On a typical day in November 2012, the revenues in the Apple App Store exceeded $15M USD, while in Google Play the revenues are just below $3.5M USD in 20 of the largest countries in both app stores… Even though the growth in revenues in Google Play in the last four months is close to that of the Apple App Store in 2012, the growth in daily revenues in the Apple App Store was higher than the total daily revenues in Google Play when comparing absolute daily revenue values.
As for the most popular apps of 2012, Distimo said Asian publisher Naver was able to beat Draw Something’s record of 1 million users in nine day. Its app, Line Pop, got 1.75 million downloads in the first 72 hours. That’s something that took Facebook nine months to accomplish. The app also brought over 1 million in revenue for the developer in 12 days.
To round out the year in review, Distmo breaks down revenue by category in the charts below: the top 10 most grossing cross-store publishers, the top 10 publishers and apps by downloads on the App Store, and the top five highest growing countries by revenue. There aren’t many surprises: Read more
Apple is all set to announce its fiscal Q4 financial earnings today, during a conference call with company executives scheduled for 2 p.m. PST/ 5 p.m. EST. iPhone 5 sales are expected to be a topic of conversation, of course, while recent predictions from 59 analysts provided an average estimate of 26.3 million iPhones total for the quarter. Today, Forbes posted revised estimates from 36 of the analysts that also includes predictions for iPhone, iPod, Mac, and other product sales.
A few things we already know from CEO Tim Cook’s announcements during the iPad mini event: 5 million iPhones 5s sold during opening weekend, 3 million new iPod nano and touch units sold, and 200 million iOS 6 devices. Cook also noted the company has now sold 100 million iPads in 2.5 years and more iPads in June than any PC manufacturers’ entire PC lineup.
In Q3 Apple reported revenues of $35 billion. As for Q4, Apple predicted during its last conference call that revenues for the fourth quarter would be around $34 billion with diluted earnings per share of about $7.65. Today, Forbes pointed us to updated estimates from Wall Street showing a consensus of $8.81 on sales of $36.02 billion.
Forbes has also posted revised estimates from 36 analysts (below). Among the 20 pros in the group, the average estimate is $8.75 on sales of $35.51 billion. The independents, on the other hand, have earnings of $9.66 on sales of $37.23 billion.
As you can see from the chart of the 36 analysts below (pros in blue), the high-end of iPhone estimates hit the 32 million-unit mark, while one independent has Mac sales as high as 5.70 million units:
The image above represents the full pricing matrix for new devices expected to unveil in a few days at the Worldwide Developers Conference. You will notice the Mac Pros, Retina MacBook Pros, MacBook Airs, and iMacs that we discussed before at length.
We have more notes on the unlabeled parts below—including the newly identified RAM update: Read more