Apple posts $43.6 billion in revenue with $9.5 billion in net profit for Q2 2013: 37.4 million iPhones sold and 19.5 million iPads

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Apple have posted their revenue results for the second financial quarter of 2013. Reaching a total of $43.6 billion in revenue with $9.5 billion in net profit. Comparing to the same period last year with a total revenue of $39.2 billion things would be looking up Apple this year have a smaller net profit with an even higher total revenue which was $11.6 billion, so over $2 billion in the difference.

Apple shipped a total of 19.5 million iPads, 37.4 million iPhones this quarter. Check out the full breakdown of the revenue report with the press release below.

Apple Reports Second Quarter Results
37.4 Million iPhones Sold; 19.5 Million iPads Sold

CUPERTINO, Calif., Apr 23, 2013 (BUSINESS WIRE) — Apple(R) today announced financial results for its fiscal 2013 second quarter ended March 30, 2013. The Company posted quarterly revenue of $43.6 billion and quarterly net profit of $9.5 billion, or $10.09 per diluted share. These results compare to revenue of $39.2 billion and net profit of $11.6 billion, or $12.30 per diluted share, in the year-ago quarter. Gross margin was 37.5 percent compared to 47.4 percent in the year-ago quarter. International sales accounted for 66 percent of the quarter’s revenue.

The Company sold 37.4 million iPhones in the quarter, compared to 35.1 million in the year-ago quarter. Apple also sold 19.5 million iPads during the quarter, compared to 11.8 million in the year-ago quarter. The Company sold just under 4 million Macs, compared to 4 million in the year-ago quarter.

“We are pleased to report record March quarter revenue thanks to continued strong performance of iPhone and iPad,” said Tim Cook, Apple’s CEO. “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.”

“Our cash generation remains very strong, with $12.5 billion in cash flow from operations during the quarter and an ending cash balance of $145 billion,” said Peter Oppenheimer, Apple’s CFO.

Apple is providing the following guidance for its fiscal 2013 third quarter:

* revenue between $33.5 billion and $35.5 billion

* gross margin between 36 percent and 37 percent

* operating expenses between $3.85 billion and $3.95 billion

* other income/(expense) of $300 million

* tax rate of 26%

Apple will provide live streaming of its Q2 2013 financial results conference call beginning at 2:00 p.m. PDT on April 23, 2013 at www.apple.com/quicktime/qtv/earningsq213. This webcast will also be available for replay for approximately two weeks thereafter.

This press release contains forward-looking statements including without limitation those about the Company’s estimated revenue, gross margin, operating expenses, other income/(expense), and tax rate. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the effect of competitive and economic factors, and the Company’s reaction to those factors, on consumer and business buying decisions with respect to the Company’s products; continued competitive pressures in the marketplace; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company’s gross margin; the inventory risk associated with the Company’s need to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; risks associated with the Company’s international operations; the Company’s reliance on third-party intellectual property and digital content; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; the Company’s dependency on the performance of distributors, carriers and other resellers of the Company’s products; the effect that product and service quality problems could have on the Company’s sales and operating profits; the continued service and availability of key executives and employees; war, terrorism, public health issues, natural disasters, and other circumstances that could disrupt supply, delivery, or demand of products; and unfavorable results of other legal proceedings. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended September 29, 2012, its Form 10-Q for the quarter ended December 29, 2012, and its Form 10-Q for the quarter ended March 30, 2013 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.

NOTE TO EDITORS: For additional information visit Apple’s PR website (www.apple.com/pr), or call Apple’s Media Helpline at (408) 974-2042.

(C) 2013 Apple Inc. All rights reserved. Apple, the Apple logo, Mac, Mac OS and Macintosh are trademarks of Apple. Other company and product names may be trademarks of their respective owners.

Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except number of shares which are reflected in
thousands and per share amounts)
Three Months Ended Six Months Ended
———————- ———————-
March 30, March 31, March 30, March 31,
2013 2012 2013 2012
———– ———– ———– ———–
Net sales $ 43,603 $ 39,186 $ 98,115 $ 85,519
Cost of sales (1) 27,254 20,622 60,706 46,252
——- ——- ——- ——-
Gross margin 16,349 18,564 37,409 39,267
——- ——- ——- ——-
Operating expenses:
Research and development (1) 1,119 841 2,129 1,599
Selling, general and administrative (1) 2,672 2,339 5,512 4,944
——- ——- ——- ——-
Total operating expenses 3,791 3,180 7,641 6,543
——- ——- ——- ——-
Operating income 12,558 15,384 29,768 32,724
Other income/(expense), net 347 148 809 285
——- ——- ——- ——-
Income before provision for income taxes 12,905 15,532 30,577 33,009
Provision for income taxes 3,358 3,910 7,952 8,323
——- ——- ——- ——-
Net income $ 9,547 $ 11,622 $ 22,625 $ 24,686
==== ======= ==== ======= ==== ======= ==== =======
Earnings per share:
Basic $ 10.16 $ 12.45 $ 24.09 $ 26.48
Diluted $ 10.09 $ 12.30 $ 23.90 $ 26.17
Shares used in computing earnings per share:
Basic 939,629 933,582 939,273 932,265
Diluted 946,035 944,893 946,626 943,185
Cash dividends declared per common share $ 2.65 $ 0 $ 5.30 $ 0
(1) Includes share-based compensation expense as follows:
Cost of sales $ 87 $ 63 $ 172 $ 126
Research and development $ 239 $ 168 $ 463 $ 328
Selling, general and administrative $ 249 $ 193 $ 485 $ 390

Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except number of shares which are reflected in
thousands)
March 30, September 29,
2013 2012
—————— ——————
ASSETS:
Current assets:
Cash and cash equivalents $ 12,053 $ 10,746
Short-term marketable securities 27,084 18,383
Accounts receivable, less allowances of $99 and $98, respectively 7,084 10,930
Inventories 1,245 791
Deferred tax assets 3,242 2,583
Vendor non-trade receivables 6,252 7,762
Other current assets 6,377 6,458
——— ———
Total current assets 63,337 57,653
Long-term marketable securities 105,550 92,122
Property, plant and equipment, net 15,026 15,452
Goodwill 1,400 1,135
Acquired intangible assets, net 4,136 4,224
Other assets 5,294 5,478
——— ———
Total assets $ 194,743 $ 176,064
========= ========= ========= =========
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable $ 14,912 $ 21,175
Accrued expenses 13,331 11,414
Deferred revenue 7,265 5,953
——— ———
Total current liabilities 35,508 38,542
Deferred revenue – non-current 2,877 2,648
Other non-current liabilities 20,868 16,664
——— ———
Total liabilities 59,253 57,854
——— ———
Commitments and contingencies
Shareholders’ equity:
Common stock, no par value; 1,800,000 shares authorized; 940,094 and 17,954 16,422
939,208 shares issued and outstanding, respectively
Retained earnings 116,572 101,289
Accumulated other comprehensive income 964 499
——— ———
Total shareholders’ equity 135,490 118,210
——— ———
Total liabilities and shareholders’ equity $ 194,743 $ 176,064
========= ========= ========= =========

Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
Six Months Ended
————————————-
March 30, 2013 March 31, 2012
—————— ——————
Cash and cash equivalents, beginning of the period $ 10,746 $ 9,815
——– ——– ——– ——–
Operating activities:
Net income 22,625 24,686
Adjustments to reconcile net income to cash generated by operating
activities:
Depreciation and amortization 3,280 1,461
Share-based compensation expense 1,120 844
Deferred income tax expense 1,957 2,915
Changes in operating assets and liabilities:
Accounts receivable, net 3,846 (1,663)
Inventories (454) (326)
Vendor non-trade receivables 1,510 (379)
Other current and non-current assets 1,269 (1,510)
Accounts payable (4,422) 2,809
Deferred revenue 1,541 1,916
Other current and non-current liabilities 3,658 778
—————— ——–
Cash generated by operating activities 35,930 31,531
—————— ——–
Investing activities:
Purchases of marketable securities (81,163) (85,022)
Proceeds from maturities of marketable securities 9,243 7,702
Proceeds from sales of marketable securities 49,188 49,052
Payments made in connection with business acquisitions, net (299) (350)
Payments for acquisition of property, plant and equipment (4,325) (2,778)
Payments for acquisition of intangible assets (429) (160)
Other (93) (48)
—————— ——–
Cash used in investing activities (27,878) (31,604)
—————— ——–
Financing activities:
Proceeds from issuance of common stock 275 377
Excess tax benefits from equity awards 502 636
Dividends and dividend equivalent rights paid (4,984) 0
Repurchase of common stock (1,950) 0
Taxes paid related to net share settlement of equity awards (588) (634)
—————— ——–
Cash (used in)/generated by financing activities (6,745) 379
—————— ——–
Increase in cash and cash equivalents 1,307 306
—————— ——–
Cash and cash equivalents, end of the period $ 12,053 $ 10,121
======== ======== ======== ========
Supplemental cash flow disclosure:
Cash paid for income taxes, net $ 4,258 $ 4,835

Apple Inc.
Q2 2013 Unaudited Summary Data
(Units in thousands, Revenue in millions)
Q2’13 Q1’13 Q2’12 Sequential Change Year/Year Change
——————- ——————- ——————- ——————- ——————-
Operating Segments Revenue Revenue Revenue Revenue Revenue
———– ———– ———– ——— ———
Americas $ 14,052 $ 20,341 $ 13,182 – 31 % 7 %
Europe 9,800 12,464 8,807 – 21 % 11 %
Greater China (a) 8,213 6,830 7,637 20 % 8 %
Japan 3,135 4,443 2,645 – 29 % 19 %
Rest of Asia Pacific 3,162 3,993 2,516 – 21 % 26 %
Retail 5,241 6,441 4,399 – 19 % 19 %
—— —— —— —- — —- —
Total Apple $ 43,603 $ 54,512 $ 39,186 – 20 % 11 %
— ——
Q2’13 Q1’13 Q2’12 Sequential Change Year/Year Change
————— ————— ————— ————– ————–
Product Summary Units Revenue Units Revenue Units Revenue Units Revenue Units Revenue
—— ———– —— ———– —— ———– ——— ——— ——— ———
iPhone (b) 37,430 $ 22,955 47,789 $ 30,660 35,064 $ 22,276 – 22 % – 25 % 7 % 3 %
iPad (b) 19,477 8,746 22,860 10,674 11,798 6,264 – 15 % – 18 % 65 % 40 %
Mac (b) 3,952 5,447 4,061 5,519 4,017 5,073 – 3 % – 1 % – 2 % 7 %
iPod (b) 5,633 962 12,679 2,143 7,673 1,207 – 56 % – 55 % – 27 % – 20 %
iTunes/Software/Services (c) 4,114 3,687 3,171 12 % 30 %
Accessories (d) 1,379 1,829 1,195 – 25 % 15 %
—— —— —— —- — —- —
Total Apple $ 43,603 $ 54,512 $ 39,186 – 20 % 11 %
— ——

(a) Greater China includes China, Hong Kong and Taiwan.
(b) Includes deferrals and amortization of related non-software
services and software upgrade rights.
(c) Includes revenue from sales on the iTunes Store, the App Store,
the Mac App Store, and the iBookstore, and revenue from sales of
AppleCare, licensing and other services.
(d) Includes sales of hardware peripherals and Apple-branded and
third-party accessories for iPhone, iPad, Mac and iPod.

Craig O'Sullivan
Craig O'Sullivan

Creator of Geektech.ie Passionate about Technology and always looking for that next cool gadget or app

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