Record iPhone, iPad sales but Apple profit stalls, shares fall

Apple CEO Tim Cook
iPhone 5c - Cook implies demand was disappointing

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

Apple has reported record iPhone and iPad sales for its December quarter, but flat profit.

Shares [NAS:AAPL] fell 7% in after-hours trading.

Apple said it made a $US13.1 billion profit in the three months to December 28, 2013 - the same figure as the year-ago quarter.

Revenue rose 5.7% to a record $US57.59 billion as the company sold a record 51 million iPhones during the quarter compared to  47.8 million in the year-ago quarter. Analysts expected 55 million.

iPad sales hit a record 26 million, up on 22.9 million in the year-ago quarter.

And contrary to analyst guestimates, computer sales also increased. Apple sold 4.8 million Macs, compared to 4.1 million in the year-ago quarter. 

However, overall gross margin was 37.9 percent compared to 38.6 percent in the year-ago quarter. In short, Apple sold more devices but made less money per device as price pressure from competitors increased.

On a conference call, CEO Tim Cook implied sales of the slightly cheaper, colourful iPhone 5C had been slower than expected, saying demand was "different than we thought."

Last week, The Wall Street Journal reported Apple had scaled back orders of the 5C, and that the plastic shell used in the 5C design will be scrapped later this year.

More broadly, analysts are still looking for any hint that Apple has another large-scale product launch in the works that could equal the iPhone (first released in 2006) or the iPad (2010).

A smart watch and an Apple television are two rumoured contenders, but Apple has yet confirm any development plans.


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7133 -0.0054 -0.75%
AUD 0.9321 -0.0068 -0.72%
EUR 0.6522 -0.0035 -0.53%
GBP 0.4657 -0.0033 -0.70%
HKD 5.5296 -0.0432 -0.78%
JPY 88.4070 -0.5780 -0.65%

Commods

Commodity Price Change Time
Gold Index 1188.0 2.350 2015-05-28T00:
Oil Brent 63.2 0.500 2015-05-28T00:
Oil Nymex 57.7 0.110 2015-05-28T00:
Silver Index 16.6 0.020 2015-05-28T00:

Indices

Symbol Open High Last %
NZX 50 5777.6 5844.9 5777.6 1.17%
NASDAQ 5096.3 5106.6 5106.6 -0.17%
DAX 11685.7 11704.4 11677.6 -1.24%
DJI 18154.1 18154.1 18163.0 -0.20%
FTSE 7040.9 7052.5 7040.9 -0.33%
HKSE 27398.3 27604.3 27454.3 -0.11%
NI225 20510.3 20636.4 20551.5 0.06%