Apple Makes $13.1 Billion Profit

Apple Headquarters at Infinite Loop, Cupertino, California | Wikipedia

Apple Headquarters at Infinite Loop, Cupertino, California | Wikipedia

Last Wednesday, Apple announced a profit of $13.1 billion or $13.81 per diluted shared. In relation to this, the company made a record of $54.5 billion quarterly revenue during the last three months of 2012, which ended last December 29, 2012. Moreover, the International sales accounted for 61 percent of the iPhone maker’s quarterly revenue.

Apple’s December 2012 Quarter Revenue Report

Apple’s latest quarterly revenue report accounts for the company’s weekly revenue of $4.2 billion. That is an increase of about one billion compared to their 2011 revenue during the same period.

Additionally, the iPhone maker sold a record of 47.8 million iPhones and 22.9 million iPads during the holiday season last year. However, the Mac fell short, as it only sold 4.1 million units during the last three months of 2012. Apple’s iPod also saw a decrease in shipment, as the company was able to sell 12.7 million units only compared to 15.4 million units in 2011.

Nevertheless, the company was able to set a record revenue of more than $54 billion. As stated by Apple CEO Tim Cook:

We’re thrilled with record revenue of over $54 billion and sales of over 75 million iOS devices in a single quarter. We’re very confident in our product pipeline as we continue to focus on innovation and making the best products in the world.

In relation to this, Apple’s Board of Directors declared a cash dividend of $2.65 per share of the Company’s common stock. The dividend is payable on February 14 to shareholders of record as of the close of business on February 11. According to the company’s CFO Peter Oppenheimer:

We’re pleased to have generated over $23 billion in cash flow from operations during the quarter. We established new all-time quarterly records for iPhone and iPad sales, significantly broadened our ecosystem, and generated Apple’s highest quarterly revenue ever.

Meanwhile, the iPhone maker is providing the following guidance for its fiscal 2013 second quarter:

  • Revenue between $41 billion and $43 billion
  • Gross margin between 37.5 percent and 38.5 percent
  • Operating expenses between $3.8 billion and $3.9 billion
  • Other income/(expense) of $350 million
  • Tax rate of 26 percent

However, an Apple investor and The Guardian contributor Charles Ferguson said that the company’s fourth-quarter earnings are a sign of strategic weakness.

Apple’s underperformance this quarter is a symptom of these problems, rather than simply a matter of component prices or gross margins. Let’s hope that they figure that out, because they still do some very cool stuff.

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