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.

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.

iPhone 5c outsold all Android, BlackBerry and Windows Phone devices in winter quarter

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While the iPhone 5c has failed to live up to internal expectations set by Apple, the smartphone certainly hasn’t been moving off the shelves as badly as some people might think. According to an AppleInsider report by Daniel Eran Dilger, the mid-tier handset actually outsold every BlackBerry, Windows Phone and flagship Android device in the United States during the winter quarter. Take a look…

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The report cites multiple sources in claiming that iPhone 5c sales were roughly 12.8 million during the three-month period, more than double the sales of some key smartphone competitors:

That means iPhone 5c sold twice as many units as all Blackberry smartphone sales combined (6 million), more than all of Nokia’s Windows Phone smartphone sales in the winter quarter (8.2 million), and in fact, all of Microsoft’s Windows Phones sold globally in the winter quarter (slightly more than 8.2 million, as Nokia makes 90 percent of the world’s Windows Phones). Even Samsung’s flagship Galaxy S4 reportedly sold just 9 million units in the winter quarter. If you do the math, that’s less than 12.8 million.

It is worth noting that the iPhone 5c was the second most popular smartphone on only half of the top four carriers — AT&T and Sprint — in the United States. The high-end Samsung Galaxy S4 nabbed second place on Verizon and T-Mobile during the same time period. But the sales numbers outlined above prove that the iPhone 5c — a so-called “flop” — is a legitimate candidate on the list of best-selling smartphones.

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A major reason why critics have been pouncing on the iPhone 5c is because it is overshadowed by the more successful iPhone 5s in sales. But as Dilger notes, it is hard to believe that Apple is upset that consumers are opting to purchase a smartphone that retails for double the price with a two-year contract. He goes as far to blame Android as part of the problem.

Note that Apple isn’t just asking for more money; consumers are readily paying twice as much to buy iPhones. That’s indicative of a failure on the part of Android. Either the entire world has been fooled, or Android is simply not as desirable as its proponents claim.

Kantar reported in December that almost half of iPhone 5c buyers were switching from competitors, namely Android-based smartphone makers like Samsung and LG. That contrasts sharply with iPhone 5s buyers, 80 percent of which upgraded from a previous iPhone model. The highest demand for the iPhone 5c comes from lower income households, with 42% of owners earning less than $49,000 per year.

Apple most recently launched an 8GB version of the iPhone 5c in Australia, China, France, Germany and the United Kingdom, perhaps further propagating myths that sales of the budget handset have been less than desirable. But as we now know it, the iPhone 5c has actually been one of Apple’s most successful products in the last year and quietly positioned itself as the world’s second most popular smartphone.

This iPhone Air concept may have nailed Apple’s approach for its next iPhone!

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Apple is tipped to launch the iPhone 6 later this year — and a concept of the “iPhone Air” that designer Sam Beckett has come up with may just be the approach Apple is taking for its next smartphone.

The concept showcases an iPhone that is only 8 percent larger than the iPhone 5s, but with a 17 percent larger display and 68 percent more pixels. Beckett decided that the iPhone Air will sport a 4.7-inch screen supporting a resolution of 1920x1080p — that’s 468ppi. According to Beckett, “some extra space could be potentially utilized by reducing the width of the side bezels and by also slimming down the top and bottom of the phone frame.” The depth of the iPhone Air’s conceptualized version is 7mm, coming in 0.6mm thinner than its predecessor.

Other features include the use of sapphire crystal as opposed to Corning Gorilla Glass, as well as a 10-megapixel camera and a faster A8 chip.

Yet apart from these tweaks, the iPhone Air that Beckett has thought of is actually very reminiscent of the iPhone 5s — which makes it seem likely that Apple may very well be already taking this design route. All we can do is wait and see what the next iPhone brings.

Apple Releases iOS 7.0.6 And iOS 6.1.6 (For iOS 6 Devices) With Various Bug Fixes

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As we continue to wait for iOS 7.1 to be released to the public, Apple has seeded iOS 7.0.6 to the public this morning. The release comes a month after iOS 7.0.5 landed at the end of January, which also featured bug fixes for certain newer models of iPhones.

It also looks like Apple has released a similar bug fix for iOS 6 users in iOS 6.1.6 Both updates are available either over the air, by visiting Settings > General > Software Update, or by plugging your device in iTunes.

iOS 7.0.6 and 6.1.6 released with bug fixes

From the surface, it looks like iOS 7.0.6, which carries a build number of 11b651, just contains a fix for SSL connection verification. It is for all devices. And as for iOS 6.1.6, it carries a build number of 10b500, and is just for the iPhone 3GS and iPod touch 4G.

We currently aren’t sure whether or not these updates are safe for jailbreakers, so it’s best to stay away from them until we get confirmation that they’re ok. We typically get word from the evad3rs or other prominent jailbreak figures within 24 hours of updates.