Apple beats Wall Street expectations with record iPhone sales

By on July 23, 2013, 6:30 PM
apple, iphone, ipad, itunes, wall street, apps, analysts, quarterly earnings

Apple on Tuesday reported third quarter earnings that beat out Wall Street estimates thanks to record iPhone sales. Cupertino moved 31.2 million iPhones during the three month period which is the most phones they have ever sold during a third quarter.

Tim Cook and company reported $35.6 billion in sales, up from $35 billion during the same quarter last year although profit slipped to $6.9 billion, down 22 percent. Along with the record number of handsets sold, Apple moved 14.6 million iPads (down from last year’s 17 million) and 3.8 million Macs (last year Apple sold 4 million). Interestingly enough, Apple didn’t even bother to report iPod sales but for what it’s worth, the company sold 6.8 million units during the quarter last year.

Elsewhere, Apple’s digital marketplaces turned in impressive numbers. With iTunes, users have downloaded a billion television episodes and 390 million movies which when broken down further, equates to 800,000 TV shows and 350,000 movies every day.

The App Store recently celebrated its 50 billionth app download. At present, there are more than 900,000 apps available with some 375,000 created specifically for the iPad. Through these apps, developers have earned $11 billion from sales with half of that revenue coming during the last four quarters.

Finally, Apple’s retail stores welcomed 48 million visitors during the quarter, raking in $667 million in the process. Cupertino added six new stores and expanded to five new countries. In total, Apple now operates 408 retail stores which include 156 outside of the US.




User Comments: 10

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Fbarnett Fbarnett said:

Where do these numbers come from? Something is wrong why are these companies inflating these numbers?

Apple 10 millions phones a month?

Android 10 millions phones a month?

These are billions on phones now

Who on the planet does not a have a phone?

Guest said:

Typical crApple news bull:

  • Tim Cook and company reported $35.6 billion in sales, up from $35 billion during the same quarter last year although profit slipped to $6.9 billion, down 22 percent.
  • Along with the record number of handsets sold, Apple moved 14.6 million iPads (down from last year's 17 million)
  • and 3.8 million Macs (last year Apple sold 4 million).

What this really means:

  • Apple profits are down nearly 7 billion from last year (Is that considered beating expectations?)
  • Amount of iPad's sold are down by 2.4 billion.
  • Amount of Mac's sold down by .2 billion.

The sad thing is, people read these articles and repeatedly tell them selves "Oh yea, Apple's always the best thing on Earth!"

Chazz said:

Typical crApple news bull:

  • Tim Cook and company reported $35.6 billion in sales, up from $35 billion during the same quarter last year although profit slipped to $6.9 billion, down 22 percent.
  • Along with the record number of handsets sold, Apple moved 14.6 million iPads (down from last year?s 17 million)
  • and 3.8 million Macs (last year Apple sold 4 million).

What this really means:

  • Apple profits are down nearly 7 billion from last year (Is that considered beating expectations?)
  • Amount of iPad's sold are down by 2.4 billion.
  • Amount of Mac's sold down by .2 billion.

The sad thing is, people read these articles and repeatedly tell them selves "Oh yea, Apple's always the best thing on Earth!"

Now look at the Microsoft article and look how negative that shit is. lolol

JC713 JC713 said:

Eh, profit still slipped.

Skidmarksdeluxe Skidmarksdeluxe said:

Come now guys, be nice to Apple or you'll hurt my feelings. I take the figures they boast about as gospel

Guest said:

But how much tax are they going to pay this year?

Guest said:

Fbarnett

its me I have none at all sim card too, but waiting for cheap iphone 4s in auction or what get for 100$ but only Apple interesting

1 person liked this | MilwaukeeMike said:

Apple profits are down nearly 7 billion from last year (Is that considered beating expectations?)

Eh, profit slipped still.

Yes, profit went down, but the important thing is why they went down. Did they go down because they sold fewer iPhones or because it cost more to make each one? According to their numbers, it's because it cost more to make each one. The linked article says that gross margin was down from 42.8% to 36.9%. Gross margin is the percentage of revenue that becomes profit. So if it went down almost 6% that means they spent over $2 billion more on making iPhones this quarter than last year's 3rd quarter.

Maybe the parts cost more, maybe the iPhone 5 costs more to make than the 4S did, maybe they lose more to poor quality... who knows...it doesn't really matter, it's not like they're going to stop making boatloads of money. Everyone is happy that they sold more, the fact that they made a little less isn't as important because it might not be an indication of the future.

They could have even profit less next quarter if they spend a bunch more on developing the 6S or the throw a bunch of money into the iWatch.

Guest said:

This iWatch and the Apple HDTV, I wonder when they'll finally come out. When they do, if they do, we'll know if Apple can still pull off hits even without Steve Jobs.

MilwaukeeMike said:

Update... yahoo finance has a article about Apple and why investors are still worried about it. Their profit margin didn't go down because it cost more to build iPhones this year like I said above, it's because they're selling more older iPhones and they make less on the older models. Investors are also worried because their sales in China are down and it's believed that Apple will have to offer a cheaper iPhone in China because the population there can't afford them at current prices.

Overall, investors were happy not because the numbers were that great, just because they thought they were going to be much worse.

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