Category Archives: Tim Cook

Apple announces Q3 2014 revenue of $37.4b: 35.2m iPhones, 13.2m iPads, 4.4m Macs

Apple Q3 Live blog earnings call

Apple today announced its Q3 2014 earnings results, revealing that the company pulled in $37.4 billion in revenue and $7.7 billion in profit during the quarter.

Apple® today announced financial results for its fiscal 2014 third quarter ended June 28, 2014. The Company posted quarterly revenue of $37.4 billion and quarterly net profit of $7.7 billion, or $1.28 per diluted share. These results compare to revenue of $35.3 billion and net profit of $6.9 billion, or $1.07 per diluted share, in the year-ago quarter. Gross margin was 39.4 percent compared to 36.9 percent in the year-ago quarter. International sales accounted for 59 percent of the quarter’s revenue.

Apple, as always, has also disclosed sales numbers for its main revenue generators. The company sold:

  • 35.2 million iPhones
  • 13.2 million iPads
  • 4.4 million Macs
  • 2.9 million iPods

Apple’s guidance for the quarter indicated revenue results between $36 and $38 billion, which Apple met.

Here’s Apple CEO Tim Cook on the results:

“Our record June quarter revenue was fueled by strong sales of iPhone and Mac and the continued growth of revenue from the Apple ecosystem, driving our highest EPS growth rate in seven quarters,” said Tim Cook, Apple’s CEO. “We are incredibly excited about the upcoming releases of iOS 8 and OS X Yosemite, as well as other new products and services that we can’t wait to introduce.”

Here’s newly instated CFO Luca Maestri with his thoughts:

“We generated $10.3 billion in cash flow from operations and returned over $8 billion in cash to shareholders through dividends and share repurchases during the June quarter,” said Luca Maestri, Apple’s CFO. “We have now taken action on over $74 billion of our $130 billion capital return program with six quarters remaining to its completion.”

Apple’s Q3 has been relatively quiet in terms of new product announcements, but the Cupertino-company did announce major moves such as the impending acquisition of Beats Electronics and Beats Music along with an expansive future partnership with IBM for enterprise-related initiatives.

These numbers compare to last quarter’s results of $45.6 billion in revenue and sales of 43.7 million iPhones, 16.3 million iPads, and 4.1 million Macs. You can also compare today’s numbers to analyst expectations from before the announcement. Apple is also holding a conference call today at 2 PM Pacific/5 PM Eastern time, which we will be covering live. Cook and Maestri will likely share prepared remarks and then take a series of questions at the end from financial analysts.

For Q4 2014, Apple is providing guidance between $37 billion and $40 billion. The full Q3 earnings results release is below:

CUPERTINO, Calif.–(BUSINESS WIRE)–Apple® today announced financial results for its fiscal 2014 third quarter ended June 28, 2014. The Company posted quarterly revenue of $37.4 billion and quarterly net profit of $7.7 billion, or $1.28 per diluted share. These results compare to revenue of $35.3 billion and net profit of $6.9 billion, or $1.07 per diluted share, in the year-ago quarter. Gross margin was 39.4 percent compared to 36.9 percent in the year-ago quarter. International sales accounted for 59 percent of the quarter’s revenue.

“We generated $10.3 billion in cash flow from operations and returned over $8 billion in cash to shareholders through dividends and share repurchases during the June quarter”

Apple’s board of directors has declared a cash dividend of $.47 per share of the Company’s common stock. The dividend is payable on August 14, 2014, to shareholders of record as of the close of business on August 11, 2014.

“Our record June quarter revenue was fueled by strong sales of iPhone and Mac and the continued growth of revenue from the Apple ecosystem, driving our highest EPS growth rate in seven quarters,” said Tim Cook, Apple’s CEO. “We are incredibly excited about the upcoming releases of iOS 8 and OS X Yosemite, as well as other new products and services that we can’t wait to introduce.”

“We generated $10.3 billion in cash flow from operations and returned over $8 billion in cash to shareholders through dividends and share repurchases during the June quarter,” said Luca Maestri, Apple’s CFO. “We have now taken action on over $74 billion of our $130 billion capital return program with six quarters remaining to its completion.”

Apple is providing the following guidance for its fiscal 2014 fourth quarter:

• revenue between $37 billion and $40 billion

• gross margin between 37 percent and 38 percent

• operating expenses between $4.75 billion and $4.85 billion

• other income/(expense) of $250 million

• tax rate of 26.1 percent

Apple will provide live streaming of its Q3 2014 financial results conference call beginning at 2:00 p.m. PDT on July 22, 2014 at www.apple.com/quicktime/qtv/earningsq314. This webcast will also be available for replay for approximately two weeks thereafter.


Filed under: AAPL Company Tagged: Apple, iPad, iPhone, iPod, luca maestri, Maestri, Peter Oppenheimer, Revenue, Tim Cook

For more information about AAPL Company, Apple, and iPhone continue reading at 9to5Mac.

What do you think? Discuss "Apple announces Q3 2014 revenue of $37.4b: 35.2m iPhones, 13.2m iPads, 4.4m Macs" with our community.

BYOD worries drove Apple-IBM deal — and a huge win for Apple

Apple devices are flooding the enterprise anyway. Now businesses -- IBM accounts anyway -- can get help making sure they work well with others once inside.

BYOD worries drove Apple-IBM deal — and a huge win for Apple originally published by Gigaom, © copyright 2014.

Continue reading….

Opinion: Seven reasons why the IBM partnership could be a pretty big deal for Apple

apple-ibm

Wall Street seemed pretty unmoved by Apple’s announcement of its partnership with IBM, the pre-market share price barely twitching, and analysts pointing to the high level of existing iOS usage in the enterprise sector, suggesting that only trivial gains would result.

Part of the reason for that impression is the hype Apple has given to the penetration level of  iOS devices in enterprise. Back in January, Tim Cook described the numbers as “unbelieveable,” stating that the iPhone is used in 97 percent and of Fortune 500 companies and the iPad in 98 percent.

It doesn’t sound from these impressive figures that there’s much room for growth. But I think the reality is somewhat different … 

ipad

First, the metric ‘used in X percent of companies’ isn’t a very meaningful one in isolation. Technically, if a company buys a couple of iPads, Apple can say that iPads are used in that company. We often have no idea whether those Fortune 500 companies have been buying iOS devices in the hundreds, thousands or tens of thousands.

If it turns out that iPads are used only by a handful of senior execs, for example, there could still be massive potential in rolling them out to an entire sales force.

blackberry

Second, while BlackBerry may be effectively dead in the consumer market, it still has a significant grip on enterprise. Inertia and familiarity mean many large companies have stuck with the dying smartphone platform, but that is unlikely to be the case forever. Pushing iPhones with business apps and proper enterprise-level systems support could, over the course of the next few years, have a huge impact.

global

Third, while there are markets where iOS is dominant in the business sector, there are others where there is still huge potential for growth. Business Insider pointed us to Citrix data showing that while Apple dominates the Asia Pacific region, it holds less than half the market in EMEA (Europe, Middle East and Africa) – and even in North America, a third of the market remains up for grabs.

(Note that these numbers are for a particular segment of Citrix customers, so are indicative rather than definitive.)

US-COMPUTER-COMPANY-IBM-FILES

Fourth, as Fortune‘s Elmer-DeWitt observes, while Apple’s previous partnerships with IBM have been less than lasting (PowerPC, abandoned in favor of Intel; Taligent, a joint programming language later abandoned by both companies; and OpenDoc, killed by Steve Jobs as one of his first acts on returning to Apple in 1997), this one is very different in nature, playing to the strengths of each.

Apple is brilliant at developing devices and platforms. IBM is excellent at building and supporting enterprise-scale systems. Put the two together and you have a proposition that is likely to have substantial appeal.

mac

Fifth, expanding iOS usage doesn’t just help sell iPhones and iPads, it also extends the reach of the Apple ecosystem within corporations. The overwhelming majority of the enterprise sector currently uses Windows PCs – and just as iPhones act as a gateway drug for consumers, leading to the later purchase of iPads and Macs, that same potential exists in companies.

I’m not, of course, suggesting this would happen overnight, nor on a massive scale. There are way too many Windows-dependent systems in use in large companies to make a wholesale switch to OS X a practical proposition – not to mention the investment in software. But it does provide Apple with a foot in the door, at least. Over time, it’s likely to have a positive impact.

google-apps-1024x575

Sixth, while iOS may be beating Android in the enterprise sector so far, businesses are showing increasing interest in Google Apps as a cost-effective and popular form of collaborative working. Penetration might be limited so far, but Google is pushing hard – and that has the potential to start hooking businesses into the Android ecosystem. Apple needs to defend itself against that threat.

consumer

Finally, consumer decisions are often based on familiarity. Many Android smartphone and tablet owners stick with the platform because they know how to use it, and there’s a hassle factor in learning something new. Exposure to iOS in the workplace could well help drive consumer migration to iOS.

The announcement may have sounded rather dry and unimportant in the grand scheme of things, but I think, over time, we might find that it turns out to have been rather more important than many currently imagine.

(Top image credit: TechCrunch Japan)


Filed under: AAPL Company Tagged: AAPL, Android, Apple, IBM, iOS, iPad, iPhone, OpenDoc, Tim Cook, Windows

Visit 9to5Mac to find more special coverage of AAPL Company, Apple, and iPhone.

What do you think? Discuss "Opinion: Seven reasons why the IBM partnership could be a pretty big deal for Apple" with our community.