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Apple profits diminished to $6.9 billion in Q3, but iPhone sales up

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.

By Electronista Staff
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  1. AppleTechSpot

    Fresh-Faced Recruit

    Joined: 06-27-13

    Strong iPhone number and the Mac held up quite well given the collapse of the desktop business. Great numbers from Apple.... better than MS and Google were able to muster that is for sure.

  1. Makosuke

    Forum Regular

    Joined: 08-06-01

    As an AAPL shareholder, I'd of course like to see fat profit margins and stratospheric profit numbers.

    But as a user and customer, the mid-30% profit range is plenty--that's MORE than enough profit to do anything strategically they want, even if they didn't have preposterous amounts of cash in the bank, Apple historically held its margins around 33%, and since Apple (unlike, say, MS with its huge-loss divisions in an attempt to force its way into new markets) doesn't generally do unprofitable market segments, it basically just means that we're getting more for our dollar when we buy Apple goods.

  1. alextr

    Fresh-Faced Recruit

    Joined: 06-21-03

    they "only" made 6.9 BILLION!!!! in 4 month and he says the profits are diminished!!!! sorry but for everyone even 1 million is a dream for a life time! for the person who wrote this get a real job dude and stop pretending you are a journalist as you are the richest person in the world with a few trillion and for you a billion is like a penny for the rest world!

  1. Spheric Harlot

    Clinically Insane

    Joined: 11-07-99

    I see you have the perspective necessary to evaluate the performance of a 30,000-employee multinational technology manufacturing empire.

    Also, a quarter of a fiscal year is three months.

  1. iphonerulez

    Dedicated MacNNer

    Joined: 11-28-08

    Apple is a dying company rushing to follow its creator to an early grave. Larry Ellison has made this point very clear.

  1. Spheric Harlot

    Clinically Insane

    Joined: 11-07-99

    How many people are sharing your account?

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