Profits slip but iPhone sales hit “record”Apple posts revenue of $37.5 billion – up $1.5bn year-on-year – for its fiscal fourth quarter to September 28.
However, net profits fell to $7.5 billion, or $8.26 per diluted share, down from $8.2 billion recorded a year ago.
Gross margin also fell to 37% – down 3%.
International sales accounted for 60% of Cupertino’s revenue. Meanwhile, retail sales hit $4.5 billion, up 6%.
Apple sold a “record” 33.8 million iPhones, helped by the release of two new iPhones 5s and 5c, and price drop of older models.
This set a new record for the September quarter, up almost 8 million compared to Q2 ’12.
“We’re pleased to report a strong finish to an amazing year with record fourth quarter revenue, including sales of almost 34 million iPhones,” said Tim Cook, Apple’s CEO.
In the earnings call, Cook also spruiked iPhone further, citing stats including 63% of consumers buying phones in next few weeks said they would choose iPhone, and claims Apple users spend 53% more time on their mobile.
iPad sales stayed stable at 14.1 million – up just 100,000 y-o-y . “I think it’s going to be an iPad Christmas,” Apple’s CEO declared.
However, maybe not.
Cook expressed doubt if Apple will be able to deliver enough of the new iPad mini with Retina, citing unclear demand.
“It’s unclear whether we will have enough for the quarter or not. We know how many we will have, but you really don’t know the demand until you start shipping.”
Mac sales fell to 4.6 million – down 300,000 units or 7%.
Apple generated $9.9 billion in cash flow from operations and returned an additional $7.8 billion in cash to shareholders, according to Peter Oppenheimer, Apple’s CFO.
The company guidance for fiscal 2014 first quarter included: revenue between $55 bn – $58 bn; and a gross margin of 36.5%- 37.5%.
Apple’s Board of Directors has declared a cash dividend of $3.05 per share of the Company’s common stock payable on November 14.
