Apple beats Wall Street analysts, posts $9.5B Q2 2013 profits on $43.6B revenue

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After much anticipation and speculation the past few weeks, Apple finally posted its Q2 2013 earnings, with a profit of $9.5B on gross revenues of $43.6B. Comparing to the $11.6B profit on revenues of $39.2B this quarter last year and $13.1B profit on revenues of $54.5B last quarter, the posted numbers are right smack with the company’s projections from the previous period.

In terms of iPhone sales, numbers are fairly the same year-over-year. According to Apple, they were able to sell 37.04M units in Q2 2013 compared to last year’s 35.1M. This modest growth of 7% is shadowed by iPad sales, which is up 65%, from last year’s 11.8M to 19.5M. However, with the introduction of the iPad mini, the average selling price of the device dropped steeply from last year. Sales of Macs and iPods continued to decline, with sales of 3.95M and 5.6M units respectively.

However, this numbers are not enough to completely deny the estimates of Wall Street analysts, which are saying that iPhone demand is decreasing. This quarter last year, iPhone sales increased by 88%, while this year the increase is a miniscule 7%.

For the succeeding quarter, Apple predicts gross revenue between $33.5B and $35.5B. Last year, for the same quarter, Apple earned revenue of $35B. Hence, should the company fail to hit the upper limit of their Q3 2013 projections they are in for bigger trouble with analysts and investors.

Together with the earnings report, the company announced the expansion of its share repurchasing scheme. From $10B last year, it is now authorizing a $60B buyback, utilizing $100B of its cash pile until 2015.

Apple also announced a few updates about iOS and iCloud. According to them, over 45B apps have been distributed through the App Store, paying $9B in royalties to developers. More so, iCloud, the company’s cloud platform which includes iMessage and other services across the Apple ecosystem, has now reached 300M users after 2 years of operation.

Source: theverge.com

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