Apple Earnings Report: Goes Big but still Misses

Apple has announced their long awaited quarterly earnings report for Q1 of 2013. Their profit and revenue are a record holding $13.1B and 54.5B, respectively. This is a lot higher than the last quarters’ numbers which were a mere $8.2B profit and $36B in revenue. Though profit is miles ahead of previous quarters, it could be because of the iPhone’s then long impending update and the iPad mini rumors holding off sales. Thats’s why you have to compare to the quarter last year around this time. This years profit just pips last years by $40M, but the revenue is up a healthy $8.17B.

The iPhone is Apple’s leading product and with the arrival of the iPhone 5, a staggering 47.8M iPhones have been sold in this quarter (not all iPhone 5s though). This is way up from the 37.04M shipments a year ago and the 26.9M last quarter. The iPhone received slow sales last quarter because consumers were waiting for the new iPhone rather than purchasing the soon to be outdated 4S.

5th Avenue Apple Store

The iPad sold 22.9M units this quarter. Which, continuing with the trend, is the highest yet. That makes it well over last years 15.43M and last quarter’s 14M units sold. The Mac has taken the fall from the increasing iPad sales. As tablets are getting better, there is less and less of an incentive to buy a laptop. This reduced Mac sales from 5.2M to 4.1M units sold. The drop in sales is largely thanks to the new iMac being delayed, due to a complicated manufacturing procedure. And yes, the iPods also tripped up with a 21% decline in sales of 15.4 million, which is great but still declining rapidly.

Apple narrowly missed Wall Street’s, estimated earnings, but beat its own. It would have beat the analysts’ expectations if Apple had factored in that extra 14th week, where as they Despite all these big numbers the Apple stock is taking a huge plunge and dipped over 10% right after the earnings report announcement. So why is this happening? One reason is, Apple may be earning more than it has ever earned before, but it’s rate of growth has slowed down. A growing company is always favourable to investors, because they care about the stock price. Since a growing company is growing, it’s stock price will also grow. This increases the net worth of the money men and makes them rich when they sell their stock. But, Apple’s rate of growth is slowing down. It’s maturing, which means it will still print a lot of money next year, but won’t keep on outdoing itself. After all, everything has an upper limit, even Apple.

Some more information about Apple earning are as follows:

Over 500m iOS devices have been activated
iPhone sales in China have doubled to $7.3b in revenue
Apple stores average 23,000 visitors per week. That’s a 7% increase.
Apple cant keep up with the large iPad mini demand
4 trillion notifications have been delivered in the Notification Center and Game Center has 200 million users
2 million Apple TV’s sold this quarter, 60% over last year. The Apple TV still remains “an area of intense interest”. We hope Apple will so something big with the TV.
Over 2 billion iMessages are being sent everyday!

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