By: iPadfanzz staff on January 24, 2013
Apple has announced its earnings for its first fiscal quarter of 2013 and it was a mixed bag for the company. In the first quarter, Apple’s revenues were $54.5 billion (up 17.7% from the year-ago quarter) with earnings of $13.81 per share. That’s a pretty good quarter in comparison with other companies.
The Cupertino-based technology giant posted healthy profits to the tune of $13.1 billion. This means that the company narrowly missed the industry estimates on the revenues front, but beat on profits.
Although expectations were pretty high by industry analysts and trade pundits for the company to post a stellar quarter but the company still managed to deliver handsome performance by many estimates.
“We’re thrilled with record revenue of over $54 billion and sales of over 75 million iOS devices in a single quarter,” CEO Tim Cook noted in the earnings release. “We’re very confident in our product pipeline as we continue to focus on innovation and making the best products in the world,” he added.
As one would expect this time the company’s booming business has lot to do with its booming hardware business. A slew of upgrade just right before the announcement of its quarterly results (iPhone 5 launch, the introduction of the iPad mini and refreshed iPods and MacBooks) also went in its favour. Apple also gained pretty heavily from the holiday buying frenzy.
It should also be noted that the company also beat its own guidance, which was $5 2billion in revnues and earnings of $11.75. If you adjust growth numbers for a 13 week quarter, iPhone grew 37 per cent and iPad grew 60 per cent.
Apple's Board of Directors has declared a cash dividend of $2.65 per share of the Company's common stock. The dividend is payable on February 14, 2013, to shareholders of record as of the close of business on February 11, 2013.
"We're pleased to have generated over $23 billion in cash flow from operations during the quarter," said Peter Oppenheimer, Apple's CFO. "We established new all-time quarterly records for iPhone and iPad sales, significantly broadened our ecosystem, and generated Apple's highest quarterly revenue ever."
Here’s how Apple did versus what buy-side investors were looking for (via Piper Jaffray analyst Gene Munster):
Revenue: $54.5 billion versus $54.58 billion expected
EPS: $13.81 versus $13.34 expected
Gross Margin: 38.6% versus 39.5% expected
iPhone: 47.8 million versus 50 million expected
iPad: 22.9 million versus 23 million expected
Mac: 4.1 million versus 5 million expected
iPod: 12.7 million versus 12 million expected
March quarter revenue: $42 billion versus $41 billion expected
March quarter EPS: (We don't see EPS guidance) versus $09.40 expected
March quarter gross margin: 38% versus 38% expected
Here are some notes from the earnings:
iPad
22.9 million, 1.7 million per week, compared to 1.1 million, average rise of 60% per week, better than IDC forecast.
Customers love 4th gen iPad. iPad Mini a tremendous hit. In addition to the tremendous response, hit in the enterprise.
Barclays roll out of 8,000 iPads was most successful in Barclays IT history.
Outside US, 10,000 government workflow in Sweden, 10,000 in Netherlands.
3.4 million iPads in channel inventory, below target of 4-6 weeks of inventory.
Regarding the iPad, Cook said, “We had strong sales for iPad and iPad mini in the last quarter. It is clear [the iPad] is already cannibalising [Windows] some. There’s a tremendous amount of opportunity there. I’ve said for two or three years now that the tablet market will be larger than the PC market at some point. You can see by the growth in tablets and pressure on PCs that those lines are beginning to converge.”
iPhone
47.8 million, up 10%. 3.7 million per week, versus 2.6 million in year ago quarter. Consistent with IDC's forecast for smartphone market.
On Q/Q basis up 78%, more than IDC's projection.
Strong iPhone growth in each geographic segment. Up 2X in China.
iPhone 5 sales drove growth. 4-6 weeks of iPhone channel.
iPhone and iOS an exceptional experience people love.
At the conference call, Cook also promised that Apple has "incredible stuff" coming down its product pipeline.
