Apple Profits Flat Despite Higher Sales As Margins are Cut
Published on: 24th Jan 2013
Note -- this news article is more than a year old.
By: Ian Mansfield
Apple has reported its first fiscal quarter results and announced that its revenue rose to US$54.5 billion from US$46.3 billion a year ago.Â International sales accounted for 61 percent of the quarter's revenue.
Net profit was however flat at US$13.1 billion as the gross profit margin fell to 38.6 percent compared to 44.7 percent in the year-ago quarter. Profits were also slightly below analyst expectation and the first time in recent years that the company has not posted at least a double-digit profits increase.
The Company sold a record 47.8 million iPhones in the quarter, compared to 37 million in the year-ago quarter. Apple also sold a record 22.9 million iPads during the quarter, compared to 15.4 million in the year-ago quarter.
Although an increase on previous year, both numbers were below expectations by about a million year.
The company also saw sales of its Mac computer range shrink to 4.1 million, compared to 5.2 million in the year-ago quarter. Apple sold 12.7 million iPods in the quarter, compared to 15.4 million in the year-ago quarter.
"We're pleased to have generated over $23 billion in cash flow from operations during the quarter," said Peter Oppenheimer, Apple's CFO. "We established new all-time quarterly records for iPhone and iPad sales, significantly broadened our ecosystem, and generated Apple's highest quarterly revenue ever."
Apple shares fell more than six per cent to $481 in extended trading Wednesday, after the release of the financial results as investors worry about how the company can continue to grow and maintain its exceptionally high profit margins.
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