SAN FRANCISCO—Apple Inc. reported record sales of its iPad media tablet for the quarter ended June 30, but the company's overall revenue for the quarter and its sales target for the current quarter came up short of analysts' expectations.
Apple sold a whopping 17 million iPads in the quarter, smashing the previous high of 15.4 million set two quarters earlier, the company said Tuesday (July 24). Sales of iPads in the quarter--the third quarter of the company's fiscal 2012--were up 44 percent compared with the previous quarter and up 84 percent compared to the year-ago quarter.
“We’re thrilled with record sales of 17 million iPads in the June quarter,” said Tim Cook, Apple’s CEO, in a statement.
On the flip side, Apple reported selling 26 million iPhones in the quarter, fewer than analysts expected. IPhone unit sales were down 26 percent compared with the previous quarter, but up 28 percent compared with the year-ago quarter. The number of iPhones Apple sold has now declined for two straight quarters after peaking at more than 37 million in the first quarter of the company's fiscal year.
Overall, Apple's revenue for the quarter was $35 billion, down 11 percent from the previous quarter but up 22 percent compared with the year-ago quarter. Total revenue was also below consensus analysts' estimates, which called for sales of more than $37 billion, according to Yahoo Finance.
Apple reported a net profit of $8.8 billion, or $9.32 per diluted share, down 21 percent from the previous quarter but up 26 percent compared with the year-ago quarter. Gross margin for the quarter was 42.8 percent compared to 41.7 percent in the year-ago quarter, Apple said. International sales accounted for 62 percent of the quarter’s revenue, Apple said.
Apple reported selling 4 million Macs during the quarter, flat compared with the previous quarter and up 2 percent compared with the year-ago quarter. The company also reported selling 6 million iPods, down 22 percent from the previous quarter and down 10 percent compared with the year-ago quarter.
Cook said Apple updated the entire MacBook line and is set to release the next major version of its Mac operating system, codenamed Mountain Lion, Wednesday morning. The company also plans to release the next major version of its iOS mobile operating for iPhones and iPads in the fall. "We are also really looking forward to the amazing new products we’ve got in the pipeline," Cook said.
Apple (Cupertino, Calif.) said its board of directors declared a cash dividend of $2.65 per share of the company’s common stock. The dividend is payable on Aug. 16 to stockholders of record as of the close of business on Aug. 13, Apple said.
For the current quarter, which closes in September, Apple said it expects sales to fall to about $34 billion and diluted earnings to decline to about $7.65 per diluted share. Analysts had expected Apple to forecast sales of about $38 billion for the quarter, according to Yahoo Finance.
eewiz said it best -- Apple products have an annual sales cycle. In fact, the annual cycle is staggered between new iPhone releases and new iPad releases, so a decline in sales of each in the quarter before everyone expects a new model should not be a surprise.
The Apple rumor mill is a double-edged sword. On the one hand, a great deal of free publicity and tremendous word of mouth. But on the other hand, a battle to maintain sales of existing products against endless rumors of new launch dates.
It's crazy, some of the rumors people will believe, even when those rumors defy common sense. I had a friend who, way back in January, was ready to dump his Blackberry and get an iPhone. He agonized over whether he should get a 4s right away, or wait for iPhone 5 -- because he heard a rumor somewhere that iPhone 5 was coming out in either February or March...of 2012! I literally laughed out loud when he asked my opinion. I reminded him that the 4s just came out last October and they can hardly make them fast enough, so why would a new model be coming out just 5 months later? "It's just what I heard," he said.
When I reminded him of the previous iPhone release intervals, and that the earliest a reasonable person might expect to see an iPhone 5 was this coming Christmas shopping season, he took the plunge and got a 4s. But for millions of would-be iPhone customers who now think they only have to wait a couple months for iPhone 5, this indeed must be putting a significant damper on sales of the 4s for the coming quarter.
iPad is a master case of Supply Chain power Apple has created as a strategic advantage. They are the only vendor that can sell a full featured tablet at $100 less and STILL make money. No analyst seems to get the magnitude of that. The other tablet competitors can't make any profit or losing money at that price point. And yet, they whine about lower margins. iPad 2 at the lower price point is there only until the 7" version comes out and then the world of margins re-aligns again. In the mean time, they sucked all the air out of the room for competitors to pick up market share.
17 million sets of iPad sold in one quarter is a fabulous sales record! The sales drop of the iPhone I think is expected as many people are now holding their money to buy the iPhone 5! I won't be surprised by the drop of sales in iPod as I really don't see its value much. What else will Apple make in the future is more important! I suppose they are planning well to roll out something that can grasp a whole new area of interest.
Analysts are stupid and couldnt get it right. Is that a big deal?
Apple's products have an annual sales cycle and the revenues are up 22% from last year. I would call this a fantastic result.
PS: Quote from Jobs "Experts are clueless"
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