Apple Q3 2013 Earnings: Record Sales Of 31.2 Million iPhones But Flat Revenue

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Once you set the expectations too high, even a small headwind could blow the minds of people concerned in any way to you; that’s exactly happening with Apple Inc. (NASDAQ: AAPL) now. Today, Apple Q3 2013 earnings report is out, beating all expectations of Wall Street; Thanks to Apple revised lower expectations Apple issued during Q2 earnings report release.

Apple iPhone sales are still growing in spite of the fact that California-based company didn’t release any new model during the quarter. In this Q3 2013 (fiscal) earnings report, Apple reported selling 31.5 million iPhones, beating Wall Street estimation of 26 million with a sizable margin. However, iPad sales failed to match its earlier performance and plunged to 14.6 million from 17 million in the year-ago quarter. Even the sales of Mac remained at 3.8 million – 200,000 lesser units the company sold in Q3 2012.

All this resulted in almost a flat quarter as Apple posted revenue of $35.3 billion in Q3 2013, resulted in net profit of $6.9 billion. During the same quarter a year ago, Apple recorded revenue of $35 billion, resulted in much higher $8.8 billion profit.

“We are especially proud of our record June quarter iPhone sales of over 31 million and the strong growth in revenue from iTunes, Software and Services,” said Tim Cook, Apple’s CEO. “We are really excited about the upcoming releases of iOS 7 and OS X Mavericks, and we are laser-focused and working hard on some amazing new products that we will introduce in the fall and across 2014.”

The third quarter is typically a weak performer for Apple as most of the products are introduced only in fall including iPhone. Apparently, the fiscal year 2013 is not going to be on the list of best years of Apple. The revenue projection for the next quarter has been discounted to between $34 billion and $37 billion.

In spite of all such meltdown, Tim Cook, CEO – Apple Inc, is keeping his head high as he suggested that the company has plenty of amazing products to launch in this fall or early 2014. While investors are clamoring for him to unveil at least one product as soon as possible, he seems to be in no jiffy situation. Definitely, after such a long absence of new product launch that could hamper Apple’s market valuation and position directly he doesn’t want to look imprudent with a failed product.

Apparently, Apple has a queue of products that could completely turn the table around in favour; While rumours are heating up about low-price iPhone – to be launched under $350 – possible bigger screen sized iPhone 5S could be introduced in late this year. Even bigger screen sized (4.7-inch) iPhone 6 is reportedly under the hood and could be available in the market in early next year. Besides, iWatch, iPad Mini 2 and 13-inch iPad – rumoured for 2014 – would only help Apple to strengthen its performance in whole fiscal 2014.

All said, the big question that agonizing everyone now – Can Apple Really Afford Such Delay? Especially when Samsung and Google both have shifted the gears to flood the market with cheap Smartphones!


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