Apple’s fiscal Q4: record iPhone sales, revenue up, profit down

Apple’s fiscal Q4: record iPhone sales, revenue up, profit downApple’s fiscal Q4 results are in for space year 2013AD, and as always, there are various ways of interpreting the figures, with a number of positives and negatives to take away.

The headline is that revenue is up year-on-year, while profit is down against the year-ago period. Say what?

Specifically, Apple is reporting fiscal Q4 revenue of $37.5 billion, and net profit of $7.5 billion. This time last year, those figures were $36 billion and $8.2 billion respectively.

It’s proposed that Apple is – or was – selling more of its lower-end devices, such as the entry-level iPhone 4 (now replaced by the iPhone 4S).

Throwing all the iPhone models together, Apple sold 33.8 million units, a record for the September quarter. That was of course fuelled by the release of the iPhone 5s and iPhone 5c, with the pair reportedly selling nine million units in their opening weekend.

As for the iPad, it was up ever so slightly year-on-year, shifting 14.1 million units compared to 14 million last year. Of course, it was widely expected that Apple would announce new models in October, and indeed they materialised as the iPad Air and iPad mini Retina.

“We’re pleased to report a strong finish to an amazing year with record fourth quarter revenue, including sales of almost 34 million iPhones,” yelled Tim Cook, Apple’s CEO.

"We’re excited to go into the holidays with our new iPhone 5c and iPhone 5s, iOS 7, the new iPad mini with Retina Display and the incredibly thin and light iPad Air, new MacBook Pros, the radical new Mac Pro, OS X Mavericks and the next generation iWork and iLife apps for OS X and iOS.”

Read more about: Apple iPhone 5cApple iPhone 5siOSApple iPad 2Apple iPad 4Apple iPad AirApple iPad miniApple iPad mini 2Apple iPhone 4Apple iPhone 4SApple iPhone 5

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3 comments

Stelph  Oct. 29, 2013 at 13:36

"It’s proposed that Apple is – or was – selling more of its lower-end devices, such as the entry-level iPhone 4 (now replaced by the iPhone 4S)."

I would have thought, if anything, that their profit margins were greater on the older tech. Surely the increase in revenue and drop in profit suggests that they are selling more of the products that have tighter margins, for example if people are more likely buying the lowest memory iPhone rather than the 64GB one now in order to save cash, and I imagine the iPad mini probably had tigher margins than the iPad and the mini is now outselling the standard iPad, hence driving down profit

lcurdie / MOD  Oct. 29, 2013 at 13:59

Hmm, maybe ;)

CFO Peter Oppenheimer says that the new iPads cost more to produce, but that the prices haven't gone up accordingly. And like you say, the iPad mini has tighter margins.

Stelph  Oct. 29, 2013 at 15:57

Hmm, maybe ;)

CFO Peter Oppenheimer says that the new iPads cost more to produce, but that the prices haven't gone up accordingly. And like you say, the iPad mini has tighter margins.


So it might be a sign that buyers are moving away for buying higher memory devices (which have the biggest margin) and are actually buying the newst devices rather than the 5c/4s or equivalent, possibly to save money in the long run when they dont have to upgrade for 2-3 years

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