Apple Post Record Breaking Results in Q1 FY2013

January 23, 2013 – Apple post record breaking results in Q1 FY2013. In the 13-weeks quarter, Apple posted a record quarterly revenue of US$54.5 billion and record quarterly net profit of US$13.1 billion, resulting to US$13.81 per diluted share. In last year’s 14-weeks Q1, Apple posted a revenue of US$46.3 billion and net profit of US$13.1 billion, or US$13.87 per diluted share. Gross margin decreased to 38.6% compared to 44.7% in the year-ago quarter while international sales accounted for 61 percent of the quarter’s revenue. Average weekly revenue was US$4.2 billion in the quarter compared to US$3.3 billion in the year-ago quarter.

Apple Sales

47.8 million iPhones and 22.9 million iPads sold

Apple sold a record breaking 47.8 million iPhones, compared to 37 million sold in Q1 FY2012. The company also sold a record breaking 22.9 million iPads in Q1 FY2013 compared to 15.4 million in Q1 FY2012. However, Apple saw a drop in the sales of both Mac and iPod. A total of 4.1 million Mac was sold last quarter compared to 5.2 million units sold in a year-ago quarter. iPod sales dropped to 12.7 million units sold compared to 15.4 million sold in Q1 FY2012.

In Apple’s earnings call, Apple also said that they sold 10 iOS devices per second in Q1 FY2013. There are now a total of 500 million iOS devices sold to date.

Below are a few interesting numbers noted in the earnings conference call:

  • iPhone sales have doubled in China.
  • Over 2 billion iMessages were sent everyday.
  • iTunes generated US$2.1 billion in revenue.
  • iPod Touch accounts for more than 50% of all iPods sold.
  • 2 million units of Apple TV sold in Q1 FY2013, up over 60% year over year.
  • Apple declared a cash dividend of US$2.65 per share to shareholders.
  • Apple now has US$137.1 billion in cash, up by 12.9% from US$121.3 billion a year ago.
  • Apple’s Cash Reserve is about half of Malaysia’s year 2011 GDP of US$278.7 billion.

Apple's Cash

What CEO Tim Cook Told Employees in Town Hall Meeting?

Tim Cook

Despite the record breaking quarter, Apple failed to impress investors who were expecting higher numbers from the company’s Q1 FY2013 financial results. Apple share price (AAPL) dropped more than US$50 or 10% overnight in after-hours trading, dropping from around US$500 a share to US$450 a share. A few days after the earnings call, 9TO5Mac exclusively reported that CEO Tim Cook talked about Android, Earnings, China, Retails and more when addressing Apple employees in a recent town hall meeting. He was quoted saying:

We just had the best quarter of any technology company ever, the only companies that report better quarters pump oil. I do not know about you all, but I do not want to work for those companies.

When addressing Apple’s record breaking Q1 FY2013 results, Tim Cook acknowledged but seemed unfazed by the recent decline in Apple’s stock price. He made it clear that share’s price is not Apple’s focus but making new products that customers love is the priority. Revenue and share price is just a by-product of Apple’s efforts.

Addressing the company’s controversial supply chain for product manufactering, Cook announced to employees that Apple would move even further forward ahead of the competition in terms of supply chain transparency. In Apple’s latest released supply chain progress report, it was reported that Apple had cut ties with a supplier due to underage-working infractions.

We want our partners to be as ethical as we are.

Cook also reiterated that Apple is working to move manufacturing of one of its Mac lines to the United States by the end of the year. Cook said that Mac sales were low in the quarter because Apple could not manufacture enough Macs. The company reportedly sold every Mac that it could build.

Cook also announced that Apple will be moving to 100% renewable energy for all of its data centers by the end of 2013 to support cloud services.

When discussing about Apple’s Retail business, Cook reportedly solemnly recognized the apparent drop in the satisfaction of retail employees during the recent, short John Browett-run period. He said that Apple is still actively looking for the new head of retail who “understands how Apple does retail” and to focus on employee and customer satisfaction.

On fierce competition from Google’s Android, Cook discussed iOS’s integrated, reliable experience versus Android’s fragmentation with a plethora of devices. Cook mentioned Apple’s large iOS web traffic in comparison to Android’s smaller web marketshare. He noted that while Android may be running on more devices, it is clear that people love and use their iOS devices more than the people who use Android-based products. Cook also noted that Android is about marketshare with its range of devices and low pricing, while iPhone and iPad products are about experience, top hardware and software quality, and, most importantly, actual usage by customers.

Click here to read the complete article from 9To5Mac.

Click here to view the Official Apple Announcement.

Click here to listen to the 62 minutes Apple Q1 FY2013 Earnings Conference Call.

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