After weeks of unofficial projections, guessing and online buzz Apple Q1 2013 Earnings report is finally out. The quarter was really impressive for Apple; the company reported its all time highest revenue for any quarter. Over the past few months, the company has been struggling to meet the investors expectations. Apple’s stock market still seems volatile, and also, the company’s growth rate doesn’t seem promising for its shareholders. But, Apple Q1 2013 (fiscal quarter ending December 29, 2012) was really outstanding in terms of revenue, profit and sales of hardware.
Yesterday, Apple released its Q1 2013 earnings report, which depicted $54.5 billion in revenue, up 17.7% from a year ago quarter. The company also reported $13.1 billion in profit; however, the profit figure in Q1 2013 was flat compare to the same quarter of the last year. Besides, earnings per share for the quarter were $13.81, down from $13.87 in the same quarter of the last year.
However, Apple didn’t do any extraordinary innovation with its devices last year, except with screen sizes–launched 4-inch iPhone 5 and 7-inch iPad Mini. Besides, the company’s stock has been on a bit of roller coaster over past few months. This time, the company really needs to come out with new strategies to impress its investors.
One of the most eye-catching aspects of Apple Q1 2013 earnings is its constant growing cash reserve; the company has now $137.1 billion in cash, up by 12.9% from $121.3 billion a year ago. Indeed, it’s tough to realize the figure, which is equivalent to HP’s annual revenues of $120.4 billion. Besides, the amount is also equivalent to Vietnam’s nominal GDP of $123.6 billion. More importantly, annual revenue of Samsung Electronics, which is now the biggest rival of Apple in smartphone segment, is just a bit higher, which is expected to reach around $180 billion for the fiscal year of 2012. However, part of Apple’s profit is expected to be used to provide dividends for existing investors.
Of course, Apple is really a profit-generating machine. But uncertainty and volatility around Apple shares have forced the company to slice its profit margin on its device. It has been noticed so far that the company is least interested towards big investments towards mergers and acquisitions. However, the company aggressively wants to invest sizable sum on its research and development in order to develop more innovative products, apparently.
One of the most interesting facts exposed from Apple Q1 2013 earnings report is the comparative progress graph between Revenue and Profit. Despite of appreciation in revenue, the profit remains identical to the the quarter an year back. It depicts how Apple is slowly facing the heat from the market and discounting its products against the competition.
Apple has now more than 400 retail stores–four new retails stores opened in China last year. The average revenue per store in Q4 2012 was $1.25 million per week, up compared to $1.22 million of the previous year. However, Apple isn’t offering anything special in its retail stores compare to other retailers.
Apple has just announced that there are now 250 million users on its iCloud service, up from 190 million in October last year. The company reported 150 million users on its iCloud services in July last year. It’s pretty much known that iCloud–which allows users to sync documents, emails, photos and other contents data across multiple devices–replaced Apple’s MobileMe service in 2011.
Although, Apple succeeded to generate highest revenue ever in any single quarter in Q1 2013, but it would have to face stiff resistance from its competitors especially in mobile segment. The company needs to focus on innovation; as a significant number of smartphone vendors, including Samsung, HTC and Motorola, are currently working hard to develop high-end devices. Besides, the company also needs to take some effective measures to stop instability in its stock market. Definitely, it will have to persuade investors, those are not satisfied with the company’s growth.