updated 04:51 pm EDT, Tue July 23, 2013
Revenue inches ahead
Apple has formally released the results of its fiscal third quarter, which ended in late June. Although revenues rose slightly year-over-year to $35.3 billion, net income fell from $8.8 billion to $6.9 billion. In terms of EPS, Apple slid from $9.32 per share to $7.47. Gross profit margins likewise sank, shifting from 42.8 percent to 36.9 percent. To the surprise of analysts, iPhone sales were up significantly -- from about 26 million to 31.2 million, but Macs and the iPad fared less well. Mac sales declined from 4 million to 3.8 million, while the iPad dipped from 17 million units to 14.6 million.
"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," reads a prepared PR statement by Apple CEO Tim Cook. "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." Cook also noted that iPad sell-through was actually down less than the raw numbers indicate due to a reduction of back inventory, meaning the tablet sold only three percent less than the previous quarter.
CFO Peter Oppenheimer noted that the company generated $7.8 billion in operational cash flow, and returned $18.8 billion in cash to shareholders through dividends and stock buybacks. The company's board of directors has announced a cash dividend of $3.05, payable August 15 to people owning shares by the end of the August 12 business day.
For the fourth quarter, Apple is guiding to revenue between $34-37 billion, and gross margins around 36 or 37 percent. Operating expenses are projected to be $3.9 to $3.95 billion, and the company's tax rate should hit 26.5 percent. Apple is also anticipating an "other income/(expense)" figure of $200 million.