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.” 

 

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 Q1 2014 earnings: 51M iPhones, 26M iPads, $57.6B revenue!

As expected, Apple is out with its financial report for Q1 2014 this afternoon. It’s an important one, as it follows a number of product releases in the late fall of last year, and then of course the holiday season, where the company typically posts huge numbers.

And it continues that tradition today. In a press release issued just a few moments ago, Apple announced that it sold 51 million iPhones, 26 million iPads, and pulled in $57.6 billion in revenue during its fiscal Q1—all record-breaking for the Cupertino firm…

Here is the full breakdown:

• Revenue: $57.6 billion
• iPhone units: 51 million
  
• iPad units: 26 million
  
• Mac units: 4.8 million

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

“We are really happy with our record iPhone and iPad sales, the strong performance of our Mac products and the continued growth of iTunes, Software and Services,” said Tim Cook, Apple’s CEO. “We love having the most satisfied, loyal and engaged customers, and are continuing to invest heavily in our future to make their experiences with our products and services even better.”

“We generated $22.7 billion in cash flow from operations and returned an additional $7.7 billion in cash to shareholders through dividends and share repurchases during the December quarter, bringing cumulative payments under our capital return program to over $43 billion,” said Peter Oppenheimer, Apple’s CFO.”

 

Apple may have sold record 55 million iPhones last quarter!

Morgan Stanley analyst, Katy Huberty predicts that 54-55 million iPhones have been sold in Q4 2013. If this is the case, then the iPhone could have very well had a record quarter.

The consensus on Wall Street is that Apple was able to move 53 million units of their popular smartphone; a slightly lower, but still overwhelmingly impressive number.

Q4 sales for electronics and smartphones are notoriously profitable for manufacturers due to the Holiday season. So it shouldn’t come as too much of a surprise when it dips below the 55 million mark significantly in Q1 2014.

What are the predictions for 2014? Huberty sees 45 million iPhones sold through the end of March, and then 35 million until the end of June. This is only because iPhone buyers typically hold off on a new purchase in anticipation of the latest iPhone’s release. In this case, the iPhone 6. But the latest smartphone from Apple isn’t the only thing that the Cupertino-based tech giant has up their sleeve.

Huberty believes that there will be other services and products from Apple to look out for:

“We believe Apple is likely to launch new Internet-based services this year, including the potential for a mobile payments platform as early as the developer conference in June, in our view. Most importantly, we believe Apple will start to monetize services on top of the many assets they have, such as iBeacon, fingerprint sensor, 575M+ credit card accounts, and homogeneous iOS installed base. iWatch or a larger iPad form factor would also push consensus estimates higher.”

The Morgan Stanley analyst also predicts that Apple’s revenue could soar as high as $58 billion. We’ll know for sure on the 27th of this month, when Apple will release their latest quarterly results.

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.

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!