Apple has just announced its Q1 2014 results with record iPhone sales touching 51 million units and iPad sales clocking at 26 million units and 4.8 million Macs. This is the best ever quarter Apple has had but it is far below analyst expectations of around 56 million iPhones. The stock is down 5 percent at the time of filing the story. Apple posted record quarterly revenue of $57.6 billion and quarterly net profit of $13.1 billion.
Apple Reports First Quarter Results
iPhone and iPad Sales Drive Record Revenue and Operating Profit
CUPERTINO, California—January 27, 2014—Apple® today announced financial results for its fiscal 2014 first quarter ended December 28, 2013. The Company posted record quarterly revenue of $57.6 billion and quarterly net profit of $13.1 billion, or $14.50 per diluted share. These results compare to revenue of $54.5 billion and net profit of $13.1 billion, or $13.81 per diluted share, in the year-ago quarter. Gross margin was 37.9 percent compared to 38.6 percent in the year-ago quarter. International sales accounted for 63 percent of the quarter’s revenue.
The Company sold 51 million iPhones, an all-time quarterly record, compared to 47.8 million in the year-ago quarter. Apple also sold 26 million iPads during the quarter, also an all-time quarterly record, compared to 22.9 million in the year-ago quarter. The Company sold 4.8 million Macs, compared to 4.1 million in the year-ago quarter.
Apple’s Board of Directors has declared a cash dividend of $3.05 per share of the Company’s common stock. The dividend is payable on February 13, 2014, to shareholders of record as of the close of business on February 10, 2014.
“We are really happy with our record iPhone and iPad sales, the strong performance of our Mac products and the continued growth of iTunes, Software and Services,” said Tim Cook, Apple’s CEO. “We love having the most satisfied, loyal and engaged customers, and are continuing to invest heavily in our future to make their experiences with our products and services even better.”
“We generated $22.7 billion in cash flow from operations and returned an additional $7.7 billion in cash to shareholders through dividends and share repurchases during the December quarter, bringing cumulative payments under our capital return program to over $43 billion,” said Peter Oppenheimer, Apple’s CFO.
Apple is providing the following guidance for its fiscal 2014 second quarter:
- revenue between $42 billion and $44 billion
- gross margin between 37 percent and 38 percent
- operating expenses between $4.3 billion and $4.4 billion
- other income/(expense) of $200 million
- tax rate of 26.2 percent