Apple Reveals Record Breaking Profits at Q1 2013 Earnings Call

Tags: , , , , , , .

Posted 5 years ago

While there may be strong competition from Android on both price and devices, especially in the European and Asian markets, Apple devices continue to sell, and sell big.

Announcing results for its fiscal Q1 of 2013 yesterday, Apple reported $54 billion in revenue and $13.1 million in net profit, boasting record sales of iPhones and iPad’s, with the devices selling 47.8 million and 22.9 million respectively.

“We’re thrilled with record revenue of over $54 billion and sales of over 75 million iOS devices in a single quarter,” said Apple CEO Tim Cook in a press release. “We’re very confident in our product pipeline as we continue to focus on innovation and making the best products in the world.”

If you compare the results to the same time last year, Apple iPhone sales have jumped by 23 percent from 37 million, while iPad sales are up from 15.4 million, an increase of 33 percent. The release of new devices, particularly the iPad mini, and the annual Christmas rush will have certainly helped Cupertino’s sales, and by doing a little bit of math, The Next Web has calculated that Apple sold six iPhones and three iPads every second during the 90-day period from Q4 2012 – incredible!

“We’re pleased to have generated over $23 billion in cash flow from operations during the quarter,” said Apple’s CFO Peter Oppenheimer. “We established new all-time quarterly records for iPhone and iPad sales, significantly broadened our ecosystem, and generated Apple’s highest quarterly revenue ever.”

There were many analysts that predicted Apple would post a drop in profits during the quarter for the first time in nine years, and while revenue narrowly missed estimates, net profits exceeded Wall Street predictions.

The only section of Apple’s business not to show growth in Q1 2013 was PCs, with Mac sales dropping 22 percent and profits decreasing from $4.9 million to $4.1 million. The company has blamed this on delays associated with getting iMacs to market, however, PC sales are poor across the board and this would have probably affected the Mac. We are now living in a post-PC age, and the iPad is a big reason for this. It could well be that Cupertino’s market-leading tablet is the device most responsible for the downturn of the company’s own desktop.

Apple will need to keep up this period of growth throughout the year to impress investors, and it is clear that the company’s success depends on how well it develops its mobile business, particularly the iPhone.

Leave a Reply