Apple Q2 2014 earnings: 43.7M iPhones, 16.3M iPads, $45.6B revenue!

As expected, Apple is out with its financial report for Q2 2014 this afternoon. In a press release issued just a few moments ago, Apple announced that it sold 43.7 million iPhones, 16.3 million iPads, and pulled in $45.6 billion in revenue during its fiscal Q2.

Other than iPad sales, Apple beat the Street estimates by a wide margin. The Cupertino company also announced an accelerated strategy for its stock buyback plans, adding an additional $30 billion to the pot (for a total of $90 billion), as well as a 7-1 stock split…

Here is the full breakdown of Apple’s Q2 earnings:

  • iPhones: 43.7 million versus 37.7 million expected
  • iPads: 16.35 million versus 19.7 million units expected
  • Macs: 4.1 million versus 4.03 million expected
  • iPods: 2.76 million versus 2.99 million expected
  • Revenue: $45.6 billion versus $43.6 billion expected

And here are some comments from CEO Tim Cook and CFO Peter Oppenheimer:

“We’re very proud of our quarterly results, especially our strong iPhone sales and record revenue from services,” said Tim Cook, Apple’s CEO. “We’re eagerly looking forward to introducing more new products and services that only Apple could bring to market.”

“We generated $13.5 billion in cash flow from operations and returned almost $21 billion in cash to shareholders through dividends and share repurchases during the March quarter,” said Peter Oppenheimer, Apple’s CFO. “That brings cumulative payments under our capital return program to $66 billion.” 

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The last time Apple split its stock was back in 2005. Shareholders will receive six additional shares for each share they hold and the share price will drop to around $80. The company also increased the dividend by 8% per share, and says it plans to do so yearly.

iPhone 6 to include relocated sleep/wake button and larger, higher resolution display

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Last night, KGI Securities’ Ming-Chi Kuo sent out a monster research note to investors with a timeline of when he thinks Apple will release their new products this year. He also offered details on each product, which he’s learned from his supply chain connections and other sources.

We’ve already covered Kuo’s iWatch predictions, which called for a “fashionable” smartwatch with advanced features like biometric sensors and wireless charging, and now it’s time to look at his iPhone forecasts. The analyst sees two Apple-branded smartphones launching this year…

Again, Kuo agrees with previous speculation that Apple is building two different handsets: a 4.7-inch and a 5.5-inch model. They’ll have the same internals though—just like the iPad Air and iPad mini with Retina display—including an A8 processor, 1GB of RAM, and of course Touch ID.

Display-wise, the analyst believes the 4.7-inch model will feature a 1334×740 Retina display (326 ppi) and the 5.5-inch a 1920×1080 display (401 ppi). Admittedly, the resolutions are odd, but it looks like both panels have the same aspect ratio as the iPhone 5—meaning no need to redesign apps.

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iPhone 6 concept via MacRumors

As for appearance, Kuo expects both phones to have slimmer bezels around the screen (10-20% narrower) and thinner profiles of just 6.5-7.0mm. He also thinks that Apple will move the iPhone’s sleep/wake button from the top to the side, in an effort to make the larger devices easier to operate.

Finally, Kuo calls for an NFC chip in both smartphones—a technology that Apple has thus far avoided in its mobile products. Keep in mind, though, that the company has filed severalNFC-related patents over the years, and is believed to have pulled NFC chips from the iPhone 5 at the last minute.

The 4.7-inch iPhone is expected to go into production as early as May, ahead of a likely September launch, while the 5.5-inch model is believed to be slated for a later Q4 debut. Kuo sees Apple ending production on the iPhone 4 and 4s, with the 5s and 5c rounding out Apple’s smartphone lineup.

It’s worth noting again that all of this intel came from an analyst report, and despite his track record, nothing is certain.

Apple surpasses 500 million iPhone sales!

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We’re now less than a week away from the end of Apple’s current quarter (January-March), and the company is expected to have sold around 38 million iPhones during the three month period. If true, the Cupertino firm has ventured into elite territory.

According to a Forbes report, Apple had sold around 472 million iPhones heading into its Q2 2014. And if its iPhone sales for the quarter come anywhere close to projections, it will mean that the company has [quietly] passed the 500 million iPhone mark…

Here’s Forbes’ Mark Rogowsky with more:

Apple has been known to mark big numerical milestones, celebrating the 50 billionth download from its App Store last May and the 30th anniversary of the Mac earlier this year. But it appears to have quietly let a big one pass within the last few weeks as somewhere on earth, the 500 millionth iPhone was sold. Despite much consternation in the media that the high-end of the market is reaching saturation, this data point demonstrates that iPhone sales continue to accelerate for Apple even if the rate of that acceleration is less breathtaking than it had been in the past.

The consensus seems to be that the 500 millionth iPhone would have been sold sometime around March 8, given the 472 million iPhones Apple had sold before the quarter and the 38 million it’s believed to have sold during the period. The math checks out.

Even though Apple didn’t announce it, the milestone is significant—particularly because the current narrative seems to be that iPhone sales are slipping due to the unsuccessfulness of the 5c and folks holding out of the oft-rumored, larger-display iPhone 6.

We should find out more about Apple’s iPhone sales during its Q2 earnings call, which is likely scheduled for late next month.