Apple Q1 Stories January 27, 2014

Apple Q1 2014: iPod sales decreased by more than half since last year

You might have noticed that the main text in Apple’s press release today for its Q1 2014 results didn’t mention device sales for the iPod alongside iPhones, iPads, and Macs. That might because it’s the only product line that has experienced a huge decrease in sales over the last year, which isn’t helped by the fact Apple hasn’t updated the products in over a year apart from a minor refresh. It does, however, still have to disclose units sold in its unaudited summary data that accompanies the press release. To be precise, Apple’s results show it only sold a little over 6 million iPods during the holiday quarter. That’s a decrease of 55% year over year for revenue and 52% for units when looking at the 12.7 million it sold in Q1 2013.  That’s also the biggest year over year drop ever for the iPod, which fell from 15.4m units in Q1 12 to 12.7m in Q1 13 before being cut in half this year. The iPhone, iPad, and Mac lineups, on the other hand, all experienced growth during the quarter.

During the conference call, Cook noted that they “have known for some time that iPod is a declining business” and that it would impact the overall results and guidance.

It’s not the first time Apple decided to leave out mentioning its iPod sales. It actually hasn’t done so since the year ago quarter when it announced the 12.7 million units sold for Q1 2013. Either way, the numbers will certainly have analysts questioning the future of Apple’s iPod line in the months to come. Apple announced back in May that it had sold 100 million iPod touch units since the device launched in 2007, but Apple has been selling less and less iPods each year.

Live blog: Apple’s Q1 2014 earnings call

As we mentioned earlier this month, Apple is scheduled to hold a conference call to discuss its earnings and sales figures from the previous quarter it reported today: including 51 million iPhones, 26 million iPads, and 4.8 million Macs. The company also reported $57.6 billion in revenue for the previous quarter. We’ll be listening in on the conference call and updating you on key developments as they play out, so follow along at 5pm EST.

As expected, Apple just announced its fiscal year 2014 first quarter results for the all-important holiday quarter. It’s Q3 report only included less than a month of sales for the new iPhone 5s, 5c and revamped MacBooks, making today’s report the first to include a full three-month period of sales for the new devices on top of the expected boost in revenue leading into the holidays. It’s also the first report since Apple shipped the new Retina iPad mini, iPad Air, and Mac Pro.

Apple reported record quarterly revenue of $57.6 billion, which lands between its guidance for the quarter of $55-$58B and estimates by analysts averaging approximately $58.1B. It also reported net quarterly profit of $13.1 billion, or $14.50 per diluted share. Those numbers compare to the revenue of $54.5 billion and net profit of $13.1 billion reported in the same quarter last year.

Break down of device sales for Q1 2014 include 51 million iPhones, 26 million iPads (both all-time quarterly highs), 6 million iPods and 4.8 million Macs. Prior to today’s report the consensus from an average of analyst estimates predicted Apple would sell approximately 55M iPhones, 25M iPads, and 4.6M Macs. expand full story

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