As expected, iPhone sales topped the charts. Apple sold 33.8-million iPhones, a new record for the quarter, and up 26-percent. Other numbers on the Mac and iPad line were surprising.
What Goes Up, Must Come Down?
The old adage of ‘Whatever goes up, must come down’ doesn’t seem to apply much to Apple’s financials these days.
iPhone sales are still going up, but profits have dropped; a notable 9-percent drop. Mac sales also saw a drop, from 4.9-million Macs a year ago, to 4.6 million.
Overall, the company’s profits dropped from $8.2-billion a year ago, to $7.5-billion in the most recent quarter.
Apple watchers also expected iPad sales to drop due to the lack of new products, but that didn’t happen. The company sold 14.1-million iPads vs. 14-million one year ago.
So, iPhone up, Mac down, iPad up. Also down are product gross margins, from 40-percent to 37-percent, though such margins are the envy of every competitor– PC, smartphone, tablet– often reduced to selling products at near the cost of manufacturing.
Apple begins the holiday shopping season, the company’s 1st fiscal quarter, with a newly revamped iPhone line, the new iPad Air and iPad mini with Retina display, and a refresh in the entire Mac line.
In summary, all those numbers mean that Apple’s revenue went up– a little, while gross margins and profits went down– a little. The company also declared a cash dividend of $3.05 per share of common stock, payable on November 14, 2013.
Earlier this month the company dropped the price of MacBook Pro models by a few hundred dollars. The iPad mini with Retina display is priced $70 more than the model it replaced. iPad Air prices remain unchanged. The iPhone 5C, while not selling as well as the iPhone 5S, is really a lower cost replacement for the original iPhone 5, and could result in Apple maintaining those notoriously high gross margins in the 1st fiscal quarter.