With no new product release to show for in the Quarter 1 of 2014, many were sitting on the fence predicting an average quarter for perhaps the most followed company in the space of personal tech. However, Apple once again proved that while question marks may loom over the future dominance given the market is more competent than ever, it remains the big daddy of town. Apple reported earnings of $10.2 billion on a revenue of $45.6 billion for the Q1 of 2014.
No surprises that the iPhone was once again the torch-bearer of success selling more that 43.7 million of them. 16.3 million iPads were sold during the quarter but that was a worrying 16% flat fall from the 19.5 million number in the same quarter last year. In the PC space, 4.1 million Macs were sold, up from the 3.9 million mark of Q1, 2013.
Apple has projected a revenue of $36 billion to $38 billion for Q2 of 2014. The positive Q1 result saw Apple shares trading at $564.47 which was 7.57 percent up. Gross margin of the company also rose to 39.3 percent which was improvement over the 37 percent same time last year. In the sea of positivity, obviously the drop in the numbers of iPad was a worrying sign, but the Apple CEO, Tim Cook insisted there is no need to ring the alarm bells just yet, by painting the overall picture of the iPad sales “We’ve sold over 210 million, which is more than we or anyone thought was possible in that period of time. That’s almost twice as many iPhones as we’ve sold in a comparable amount of time … we’ve come a long way, very very quickly”. Apple also announced its intentions to split each stock in seven parts, trading on which will begin June 9th, giving each stockholder, six additional stocks.
The highlighted points from the results were:
- revenue between $42 billion and $44 billion
- gross margin between 37 percent and 38 percent
- operating expenses between $4.3 billion and $4.4 billion
- other income/(expense) of $200 million
- tax rate of 26.2 percent
Tim Cook also in his usual subtle tone assured that Apple is working hard on new products and we could be in for an interesting Q2 with the WWDC just around the corner in June.
Source: Apple, ArsTechnica