Apple earnings: $43.6 billion in sales, 37.4M iPhones, 19.5M iPads!

Apple surprised Wall Street today with stronger than expected earnings!

Apple reported earnings of $9.5 billion on $43.6 billion in sales. That was right on target with the $9.5 billion in profit and above the $42.3 billion in sales Wall Street expected, and above Apple’s own expectations, which were between $9.23 and $10.23 per share on sales of $41 billion to $43 billion.

By comparison, Apple tallied up a higher $11.6 billion in profit on sales of $39.2 billion during the same quarter last year. That was fueled by iPhone and iPad sales that were 88 percent and 151 percent better than the year before, respectively.

“We are pleased to report record March quarter revenue thanks to continued strong performance of iPhone and iPad,” Apple CEO Tim Cook said in a statement. “Our teams are hard at work on some amazing new hardware, software and services, and we are very excited about the products in our pipeline.”

For its next quarter, Apple said it expects sales between $33.5 and $35.5 billion and a margin between 36 and 37 percent, which is less than the $38.6 billion in sales and 38.6 percent margin analysts, on average, were expecting ahead of the call.

 

Here are all of the important numbers:

  • Revenue – $43.6 billion
  • EPS (earnings per share) – $10.09
  • Gross margin – 37.5%
  • iPhones – 37.4 million
  • iPads – 19.5 million
  • Macs – Just under 4 million
  • iPods – 5.6 million

Graph:

Q2 2013 iPhone sales

Q2 2013 iPad sales

Q2 2013 Mac sales

Q2 2013 iPod sales

Q2 2013 Revenue Profit

 

Apple acquires indoor GPS company WiFiSLAM for $20 million

wifislam logo

Big news out of Cupertino this evening. The Wall Street Journal is reporting that Apple has acquired indoor mobile location positioning firm WiFiSLAM, in a deal worth somewhere in the neighborhood of $20 million.

Apple has confirmed the acquisition of the company, which possesses proprietary technology that allows mobile apps to detect a smartphone user’s location inside of buildings using preexisting ambient Wi-Fi signals…

The Wall Street Journal‘s Jessica Lessin reports:

“Apple has acquired indoor-GPS company WifiSLAM, a sign that the war over indoor mobile location services is heating up. Apple paid around $20 million for the Silicon Valley-based company, according to a person familiar with the matter who said the deal closed recently.

The two-year-old startup has developed ways for mobile apps to detect a phone user’s location in a building using Wi-Fi signals. It has been offering the technology to application developers for indoor mapping and new types of retail and social networking apps.”

WiFiSLAM has just a handful of employees, made up of a mix of former Google software engineers and Stanford graduates. It’s raised an unknown amount of money from angel investors, including Google’s Don Dodge.

Here’s co-founder Joseph Huang speaking about WiFiSLAM at GeoMeetup late last year.

Apple’s acquisition of the indoor positioning firm makes sense, considering that it’s trying to compete with Google in the mapping space. Google Maps currently supports indoor maps for a number of popular venues.

A company spokesman confirmed the buyout with The Journal, saying that Apple “buys smaller technology companies from time to time,” but generally doesn’t discuss its plans. And he declined to comment any further.

He’s right though, Apple has acquired a number of smaller companies in the last few years—particularly those with mapping technologies. In 2009 they acquired Placebase, and later added Poly9 and C3 Technologies.

Apple released its in-house Maps app last fall alongside iOS 6. It initially received a copious amount of criticism over the service due to data inaccuracies, but it has made a number of improvements within the last 6 months.

Apple no longer World’s Most Valuable Company !

Last February, Apple’s market cap of $470 billion made it the most valuable company in the world, ahead of the former leader, international oil and gas firm ExxonMobil. And  Apple kept going. By August, the stock was worth $621 billion making Apple the most valuable company of all-time and giving it a value 53% higher than the New York based runner-up. Apple even rose higher before peaking on the day that the Apple iPhone 5 launched.

Apple'[s market cap has fallen under Exxon's - Exxon regains title of world's most valuable company after Apple debacle

But a decline of 38% since then has taken Apple’s market cap below Exxon’s allowing the latter to regain the top spot as the world’s
most valuable company. Exxon now has a market cap of $418.23 billion versus Apple’s $413.06 billion. The company seems to have lost the backing of Wall Street and main street. During its run up to all time highs, both good news and bad news were equally rewarded. Now, good news and bad news are equally met with selling. While Apple CEO Tim Cook might say that the product pipeline is “chock full,”  the cycle that Apple is currently in cannot easily be broken.
About a half dozen U.S. companies in history have hit the $500 billion value mark including Apple, Microsoft and Exxon. Only Apple and Microsoft have ever hit $600 billion.

In other Apple news the company has started pushing out iOS 6.1 beta 5 to registered developers. The update will allow Siri to buy movie tickets, and should improve Apple Maps, Passbook and a fix a few bugs. Beta 4 expires on Tuesday, so registered developers need to update to beta 5 ASAP!

Worldwide Smart Connected Device Market: Led by Samsung and Apple!

Samsung led Q3 with market share (21.8%), Apple led with value ($34.1 billion)

FORTUNE — Once again, Samsung and Apple are the big winners in the quarterly Worldwide Connected Smart Device report that IDC released Monday.

Combined shipments of PCs, tablets and smartphones grew a healthy 27.1% year over year in the third quarter of 2012 according to IDC — a total of 303.6 million devices worth $140.4 billion. But the growth was heavily weighted to the markets where Samsung and Apple dominate: smartphones and tablets.

IDC expects more of the same this holiday season: tablet shipments in Q4 are expected to grow 55.8% and smartphones 39.5%, while PC shipments are expected to decline slightly from this quarter a year ago.

In a set of stats that neatly sums up the competition between the two companies, IDC reports that Samsung maintained the top position in market share (21.8%) based on shipments, while Apple, which ranked second in shipments, led all vendors in the value of products shipped ($34.1 billion).

“The battle between Samsung and Apple at the top of the smart connected device space is stronger than ever,” says IDC’s Ryan Reith. “Both vendors compete at the top of the tablet and smartphone markets. However, the difference in their collective ASPs [average selling price] is a telling sign of different market approaches. The fact that Apple’s ASP is $310 higher than Samsung’s with just over 20 million fewer shipments in the quarter speaks volumes about the premium product line that Apple sells.”

The chart above shows IDC’s forecasts for the next four years.

Below: IDC’s spreadsheets.

Screen Shot 2012-12-10 at 10.20.51 AM

Screen Shot 2012-12-10 at 10.21.44 AM

iPad mini coming soon: invitations set to be mailed out Oct. 10!

This is a rumor we have no reason to believe except it comes from a major Apple (AAPL) investor who says he’s heard it from “multiple sources.”

According to our source, who asked not be named, there appears to be some truth to the widespread rumors that Apple is preparing to launch a smaller and cheaper version of the iPad — often called the iPad mini or iPad air and usually described as having a 7.85-inch screen.

What our source adds is the specificity of a date: The press, he says, can expect invitations to go out on Oct. 10.

If the rumor is true, and if Apple follows its usual scheduling protocol, that would suggest a special event to unveil the product on Wednesday, Oct. 17, with a launch day of Friday Nov. 2 — plenty of time to capture holiday sales.

Apple has not commented on the rumor, which is not surprising given that the company has never uttered a word  in public — one way or the other — about its future tablet product plans.

That would suggest an Oct. 17 unveiling with sales to begin in early November