Apple beats Street on record quarterly iPhone sales

Apple today announced financial results for its fiscal 2013 third quarter ended June 29, 2013. The Company posted quarterly revenue of $35.3 billion and quarterly net profit of $6.9 billion, or $7.47 per diluted share. These results compare to revenue of $35 billion and net profit of $8.8 billion, or $9.32 per diluted share, in the year-ago quarter. Gross margin was 36.9 percent compared to 42.8 percent in the year-ago quarter. International sales accounted for 57 percent of the quarter’s revenue.

Analysts surveyed by Thomson Reuters expected Apple’s fiscal third quarter to hit $7.32 per share on $35.01 billion in revenue for the quarter ended June 30.

Apple sold 31.2 million iPhones, a record for the June quarter, compared to 26 million in the year-ago quarter. Apple also sold 14.6 million iPads during the quarter, compared to 17 million in the year-ago quarter. The Company sold 3.8 million Macs, compared to 4 million in the year-ago quarter.

Apple’s Board of Directors has declared a cash dividend of $3.05 per share of AAPL common stock. The dividend is payable on August 15, 2013, to shareholders of record as of the close of business on August 12, 2013.

“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,” said Tim Cook, Apple’s CEO, in a statement. “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.”

“We generated $7.8 billion in cash flow from operations during the quarter and are pleased to have returned $18.8 billion in cash to shareholders through dividends and share repurchases,” said Peter Oppenheimer, Apple’s CFO.

Apple is providing the following guidance for its fiscal 2013 fourth quarter:
• revenue between $34 billion and $37 billion
• gross margin between 36 percent and 37 percent
• operating expenses between $3.9 billion and $3.95 billion
• other income/(expense) of $200 million
• tax rate of 26.5%

For Apple’s fiscal fourth quarter, analysts surveyed expected guidance of $7.95 per share in earnings on revenue of $37.08 billion.

MacDailyNews Note: Apple will provide live audio streaming of its Q313 Third Quarter Results Conference Call using Apple’s industry-leading QuickTime multimedia software. The live webcast will begin at 2:00 p.m. PDT on Tuesday, July 23, 2013 here and will also be available for replay for approximately two weeks thereafter. The webcast is available on any iPhone, iPad or iPod touch running iOS 4.2 or above, any Mac running OS X 10.5 or above or any PC running QuickTime 7 or later.

As usual, MacDailyNews will provide live notes of Apple’s Q313 conference call today at 5pm EDT. Check our home page for the link later today at approximately 4:45pm EDT.


      1. I think (hope) that ijah420 is being a tad sarcastic. Though he’s right in the sense that there’s usually some know-nothing analyst relaying how Apple is doomed if they do this, and damned if the don’t.

        The only thing that remains consistent is that Apple is screwed either way.

    1. It’s all about the ecosystem. Hardware margins will compress.Hardware sales will peak but the ecosystem can continue to expand. The ecosystem is the sticky that Apple has to keep customers inside its world. A larger iPhone,China Mobile,the iPhone Lite and iTV will be the next conduits for the ecosystem.

        1. I don’t read where billyjackblack makes off topic comparisons that don’t exist.

          Just the fact, Jack!

          • 14.6 million iPad units sold vs. 17 million YOY (newer model – 3rd-gen. iPad – was available during quarter last year)

          Source: MDN

  1. Wow, iPhone sales absolutely blew away all expectations, but iPad sales were definitely weaker than projected. All in all yet another very good quarter though for sure. So much for any kind of a lull ahead of the next iPhone launch this fall.

    1. Last years quarter was the first full quarter when the retina iPad was sold vs this year when we are waiting for the iPad 5. On a sell through basis the iPad sales were down only slightly.

  2. Note that 57% of revenue comes from sales outside the US.

    When people bitch about Apple not paying enough US taxes, let’s remember that most of their sales are outside the USA and all of their manufacturing is outside the USA. In fact, other than a headquarters building, some data centers, and lots of Apple Stores, most Apple activity is not in this country. And yet Uncle Sam wants to tax it all.

    Just sayin’.

    1. Pretty amazing. When the 5S comes out then presumably the intro level iPhone will be the 4S. The 4S is an amazing phone. I can see lots of people being very happy with any level of iPhone they get.

  3. Good news for the most part. iPhones sales surprised considering all the FUD articles such as pro Samsung overtaking Apple I’ve read couple weeks ago.

    Will it matter to the media tech analysts? My prediction they will report the positives first and then but, but, but and focus on slightly missed projections like margins and future FUD creeps in.

    Certainly hope not.

    Apple up in after hours trading. Another Apple shakedown round by the media, analysts and Wall Street … we shall see.

    1. Another on Wash Post online website, headline:

      Apple’s earnings fall, iPhone sales rise as more people buy older, less expensive models

      By Associated Press,

      SAN FRANCISCO — Apple’s sales of older, less expensive iPhones climbed in its latest quarter, highlighting the challenges facing the world’s most valuable technology company as it tries to reverse a recent decline in its earnings and prove that it can still innovate.

      The results announced Tuesday topped the projections of analysts who steer the way investors tend to react to financial reports. That helped lift Apple’s stock by $14.61, or more than 3 percent, to $433.60 in extended trading after the numbers came out. The shares still remain down more than 35 percent since the latest model of the iPhone came out 10 months ago.

      The downturn largely reflects the intensifying competition in the smartphone and tablet computer markets …

      Yeah, that stifling competition that iPhone record sales just BLEW UP! No wonder the lamestream media shrinks on a yearly basis.

  4. Wait no! They are supposed to be doomed. Destroyed. Etc…yet an almost year old phone is beating the pants of those others who shall rename nameless. I enjoyed posting this on Google . You know the company that missed expectations.

    1. Mac sales down slightly but much less than the opposition so that is a net gain. IPod sales down that’s inevitable as phones do the job and hardly new news the only surprise is the iPad sales down for which there is some explanation as related above. Needs work but all in all quashes the arguments of the doom mongers and suggests stability in a maturing market. Now they need to focus on the weaker aspects till the next new income stream can be brought into play.

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