Apple’s quarterly results a mixed bag: iPhone sales up, iPad down
Apple’s quarter results are in, and for those of you non-Apple fans that are hoping for the Cupertino kids to file for bankruptcy any time soon, that’s just not going to happen. The company has reported revenue of $37.4 billion, and earnings of $1.28 per share (after last month’s seven-for-one stock split). These numbers are above Apple’s own $36 billion projections, though a little shy of Wall Street’s $37.99 billion forecast, where the earnings per share did exceed the $1.23 projected. Still, if you think all these numbers are positive, that’s actually not the case; so prepare to not be shocked.
Almost half of Apple’s revenue was made by selling 35.2 million iPhone units, a staggering figure that left $19.75 billion in revenue. This number is up from 31.2 million units in the same quarter last year, and which Tim Cook attributes to sales in Brazil, Russia, India and China. The biggest disappointment in this call was the iPad once again as Apple only sold 13.27 million units, which is considerably down when compared to last quarter’s 16.35 million units, and 14.5 million units in the same quarter last year. Tim Cook still claimed that these numbers met Apple’s expectations, though he was clear that “we realize they didn’t meet any of yours.” He attributes this drop due to some reduced channel inventory and market softness in places like the US and Western Europe.
One interesting figure is Apple’s 36% increase in research and development spending over the previous year. It’s clear that Apple is ramping up for new products this year, and we should expect these to happen any time soon during the fall. It’s hard to understand why Apple has chosen to launch most, if not all its new products in the fall considering people can’t buy them all at once, but hey, they’re the experts.