Apple Reports Strongest Quarter Ever, But Growth Slows
Apple has announced financial results for Q1 FY 2014. Apple had revenue of USD57.6 billion and a net profit of USD13.1 billion, both of which are at an all time high. However, growth has slowed compared to previous quarters in recent years. The company’s gross margin was 37.9 percent versus 38.6 percent a year ago. Non-US sales accounted for 63 percent of Apple’s revenue, and currently holds USD158.8 billion in cash and marketable securities.
“We are really happy with our record iPhone and iPad sales, the strong performance of our Mac products and the continued growth of iTunes, Software and Services,” said Tim Cook, Apple’s CEO. “We love having the most satisfied, loyal and engaged customers, and are continuing to invest heavily in our future to make their experiences with our products and services even better.”
A record of 51 million iPhones were sold in Q1 2014, up from 47.8 million in Q1 2013, bringing Apple’s total to 472.3 million iPhones sold. Apple sold 26 million iPads, also a new record, up from 22.86 million in Q1 2013. 195 million iPads have been sold. It sold 4.8 million Macs during the quarter, compared to 4.06 million in Q1 2013. Apple sold a record 51 million iPhones in the quarter, up from 47.8 million in the same time period last year, and the company has now sold 472.3 million smartphones in total. It sold 26 million iPads, a new record, up from 22.86 million last year, a total of 195 million tablets. It sold 4.8 million Macs during the quarter, compared to 4.06 million in Q1 2013.
Apple really needs to come out with a new product, or update its existing lineup to provoke new consumers. If not, Apple’s growth will continue to grind to a halt, stalling around this point. Perhaps an actual Apple TV or iWatch could help?
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The Resource Legend 
Apple is doomed
Seriously they’re really hitting on all cylinders and this is good news to the investors and us customers.
I just hope they take these profits to increase their innovation, the so called iWatch and TV are nowhere to be seen and we’ve not seen any major changes to the iDevices.
The stock is off 5% after hours. The iPhone number was a big “miss” though earnings and margin were slight beats.
they are making lots of money but margins are dropping and growth is gone
5 years ago they never discounted the iphone. now the latest model is always on sale
Actually margins rose YOY.
Apple still doesn’t discount it. Retailers who want you to come into their stores do. I bought an iPhone 5s from Best Buy for $224 at Christmas. That was a $75 discount off of Apple’s price, and I can guarantee you that Best Buy ate every bit of that.
And their stock is down $24.
Impressive
I knew the first comment was going to reference being doomed
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So apparently Apple is down 4% in after hour trading !
Ouch, I didn’t realize
Hopefully they can back on track with the iPhone 6
It’s the iPhone number. Analysts got ahead of themselves again, and so 51 million is a “disappointment.”
Now can every single “Analyst” who was wrong be fired?
Only on Wall Street is it a disappointment when Apple sells an all-time record number of iPhones (51 million) in a quarter.
iPhone numbers less than expected so immediate reaction is to sell off. Guidance not great. Growth definitely slowing, time for new product lines.
Hmm, seems on the low end of iPhone projections.
“Strongest ever quarterly earnings” according to whom? Their margins are down from last year, thus the 6% after hours slide.
Again, it’s just a stupid betting game. Long investors lose money despite insane profits.
Behold! The reason iOS is driving development and is the top resource priority.
iPod grew?
It’s not a factor anymore. Even Tim Cook called it a “declining business”.
This is the fourth-highest quarterly earnings (profit) by any company (any country).
Of the six highest earnings ever, Apple now owns positions 4, 5, and 6. The top three are all oil companies. Of the top 20, Apple is the only non-oil company.
1. Gazprom (Russian oil), $16.24B USD, August 2011
2. Royal Dutch Shell (Netherlands/UK oil), $15.68B USD, June 2008
3. Exxon (US oil), $14.8B USD, September 2008
4. Apple, $13.1B USD, January 2014
5. Apple, $13.08B USD, January 2013
6. Apple, $13.06B USD, January 2012
Wall Street is gonna crucify Apple for these numbers, investors beware!
i used to look forward to earnings calls, now i cringe when they come. The stock tanks every time.
Buying opportunity.
I don’t get it. Highest quarter ever and the stock is down 5%. What do those guy on Wall Street want?
They want higher growth. Concerns grow when a company’s revenue stagnates like Apple’s has.
I really hate the stock market. It’s a record number, in what ways is that a disappointment number in the market that’s full of solid competitors and is basically saturated?
It’s good news for Apple but not customers, prices will rise for iPhones as they’ll expect customers to buy just to keep up with the fad. Sad day we’ll continue to be mugged for overpriced hardware.
This is not being indecisive lol
Well, that’s a growth of zero percent. At least they have stopped shrinking.
This is all without a bigger iPhone a bigger iPad I watch Or iTV. Just awesome
Feels good NOT being an Apple shareholder.
Wasn’t this the holiday quarter ? One should expect the quarter following the holiday quarter to be down.
Sold my mother’s stock today at $551.
Sold mine back in December at $555-560.
I love Apple, but my stock decisions are based on making money for myself, not brand loyalty.
Everything wrong with our economy is that people expect uncontrolled, wild growth every year always and forever. When growth slows or contracts for a short period people lose their crap. Infinite growth is impossible.
Solid quarter. $158B cash. Good work!
4.8m Macs. That’s the bit I like. The share price doesn’t concern me as I’m not a shareholder
So Apple knocks it out of the park and Samsung misses goals.
I’m so excited I’m almost having a physical reaction