“Apple Inc. said quarterly profit rose 12 percent to $7.75 billion, with a jump in iPhone and Mac sales helping to make up for a drop in iPad demand,” Adam Satariano reports for Bloomberg.
“Apple sold 35.2 million iPhones and 4.4 million Macs, up 13 percent and 18 percent respectively. That helped boost revenue by 6 percent to $37.4 billion in the fiscal third quarter ended June 28,” Satariano reports. “iPad sales fell for the second straight quarter, to 13.3 million, the company said in a statement today.”
“The results were mostly in line with analysts’ estimates and weren’t the blowout that investors have come to anticipate from the company. Apple is also approaching one of its most critical product rollouts in years. After facing questions about whether it can build breakthrough products without co-founder Steve Jobs, Apple is prepping new bigger-screen iPhones, a wearable gadget and an upgrade to its Apple TV set-top box, people familiar with the plans have said,” Satariano reports. “‘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,’ Cook said in the statement, referring to Apple’s new software… The drop in iPad sales is attributable to a market slowdown in the U.S. and Western Europe, Maestri said. IPad sales rose in developing countries like China, where sales grew 51 percent during the quarter, and India, where they rose 45 percent, Chief Financial Officer Luca Maestri said.
Read more in the full article here.
Related articles:
MacDailyNews presents live notes from Apple’s Q314 Conference Call – July 22, 2014
Apple profit beats estimates, revenue slightly short – July 22, 2014
The “halo effect” of coming new products is buoying the stock. Had this happened at this time last year, it would have been “the end of Apple and Tim Cook” again.
Truthfully, there could be some sort of a serious problem when the CEO says the company has met its own expectations but Wall Street says those expectations are too low. Would Tim Cook be considered to be low-balling estimates or expectations? I’m not sure. If a company sets reasonable expectations (which I think Apple is doing) then how can the company strive to beat Wall Street’s higher expectations? I don’t know. Wall Street doesn’t have to use any formula for expectations and can just pull them out of thin air and they may be entirely unreasonable based on economic conditions. If the tablet market is saturated then there’s little Apple can do aside from dropping prices lower than Android tablets. But then margins are affected.
Apple is being caught between a rock and a hard place. Using Apple’s current revenue streams, it looks to be a no-win situation for Apple and shareholders. Is it even possible to hold margins, lower prices and sell more units? I don’t think it is possible short of some miracle tablet. Apple is going to have to push tablets into schools but it looks like Chromebooks are going to beat tablets in that space due to low prices.
When I say “this” I mean the slight revenue dip.
And yet BusinessWeek manages to headline an article “The iPad Continues to Struggle, and a New iPhone Could Make It Worse”
http://www.businessweek.com/articles/2014-07-22/the-ipad-continues-to-struggle-and-a-new-iphone-could-make-it-worse
Because 78% of tablet usage for the iPad spells DOOM!
Full of drama!.
Living in a world where drama reigns and bad news triumph is not surprising but I see what you are getting at…
BusinessWeek: Demonstrating how JEALOUS the rest of Wallnut Street is of Apple. Poor babies. 😥
“You ain’t seen nothing yet!” – Al Jolson
=:~)
Hmmmmm…..
It’s been decades since I last saw that film.
Hopefully, Apple’s upcoming products will do as much for Apple as that film did for Warner Bros.
It appears Apple took profits from Samsung 😎
Yeah? But iPad sales are down. Apple is doomed. Yes. Doomed. Screw the Mac. Screw the iPhone. Only the iPad is important. Screw that record profit. It’s all about the iPad.
God Howie, chill. Everything id going to be just fine. All according to plan. Relax.
CJ- I think Howie was being sarcastic, but forgot the “/s” tag. 😊
Yes, Howie IS being sarcastic.
Don’t let a random troll get your goat.
But, if there were only some way to sic the virtual dogs on them, tear at their virtual jugular veins, gnaw at their puny virtual reproductive organs, drag their worthless virtual carcasses to an open field where virtual vultures would finish them off, their bones bleaching in the virtual sun until one day they are harvested by virtual shamans for magical medicinal distillations…? Not that we’re bitter or anything.
For me, understanding the self-destructive nature of hating and trolling, I’m happy just to imagine the wounds such self-loathers inflict on themselves.
And in the spirit of a five year old, I suggest that they:
“Stop Hitting Yourself! Stop Hitting Yourself!”
Life is far more fun when we make ourselves grow and encourage the same in others around us.
You’re a better person than I am, Derek. You understand their self-destructive nature and leave them to it, whilst I insist on inflicting some destruction of my own. That is a very bad habit of mine, some have called it an instinct; until I can overcome that, no fool within my radius is completely safe. 🙂
Well, I think you know my penchant for trampling those in the act of damaging others out of their own personal problems. That’s most certainly an instinct for me, although I think it’s a general result of first sibling training, protecting the younglings.
Fools sort of fall in another category for me. I have a similarly low tolerance, seeing as foolishness is a terrible destroyer and soooo annoying, especially my own foolishness! 😉
Dang I just love the pitter patter of you two exchanging ideas and what not. Mind you there are a few others here that are great fun at MDN.
Anarchy can be fun in 12 lessons or less.
Have a grand day.
One has to wonder what someone gets out of trolling. I also feel the urge to slap these dickheads down and have done so many times.
How is it that a person can be so sociologically retarded that they get their kicks pissing people off on forums.
I don’t know or care who they ID as as many come here under multiple nic’s anyway. I couldn’t be arse’d anymore. As my mother always said “ignoring them is the best way to piss em’ off and get rid of the drop-kicks”
The ignoring them strategy is obviously easy on the net. Up close and personal is another situation, where I am all for giving them a bonk if they’re being a persistent pest. Nonetheless, there is a lot to learn about their personal problems and I am surprised that often there is someone humane under the bravado. There is no formula for figuring out what’s going on in people’s heads that I know of.
I just get so sick of analysts only focusing on the negatives rather than the bigger picture. You should see my rant on another of these stories about Apple’s financial results.
Apple’s multi-legged stool, or multi-teated udder, makes all the difference.
Great to see the Mac doing well.
I’ve forgotten how many teats your wife has Arnold. Is it 9? What a babe! 😀
Actually, Bessie sports an even dozen.
Hubba hubba, nudge, nudge, wink, wink, say no more!
I loved how Arnold was the most sensible being in Hooterville 😃
My momma raised me right.
“Animal Farm” gave all us members of the porcine family a bad rap – Mr. Orwell didn’t know squat about us porkers.
It’s affirming to receive and embrace your kind words.
Just keep on milking that for all it’s worth
Bingo!
Love the way TIm said : “We met OUR expectations…”
😆!!!
MSFT is the best performing tech company in 2014 based on stock price and theybcontinue to rule the PC space.
What are YOU smoking?
They rule the layoff space, too!
people familiar with the plans have said…
Them again. Yawn.
How many phones can the one company sell? Yeesh.
Even with the 6 just around the corner they’re still selling like crazy. Yeesh.
And I bet Samsung, Microsoft, HTC, Nokia, LG and poor old Blackberry are only thinking one thing. Yeesh!
Every Quarter it is the same Wallstreet Game. Apple increases sales and profits, but is does not fit exactly to some brokers prediction that Apple will do eve better, and Apple is in the poop house and getting ready to go out of business. All to play the stock.