Despite record iPad sales, Apple's revenue comes up short
7/24/2012 6:43 PM EDT
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.