Apple Rises and Falls After Earnings – A Quick Behind the Numbers

 

Apple rises a little bit after earnings release. A preliminary behind the numbers.

Apple Logo

Will Apple continue as a growth company, or an earnings company?

As of this writing, Apple closed up 0.74%, but lost 0.84% in after hours trading, following the release of Q4 earnings.

Whether this release was good or bad seems to be in the eye of the beholder as Apple manages to:

It is truly everything to everyone.

Let’s take a look behind the numbers, as we’ll get into the rest of the release in a later post.  They had net income of $7.5 billion on net sales of about $37.5 billion for the quarter.  That’s a lot of dough, but is anything else going on?

After a seasonal dip in revenue in Q3, revenue increased about 7.1% from the previous quarter.  For Q3 2012, revenues also dipped, but they only dipped 11% as we see here:

Q3 2012 Revenue
Q4 2012   Revenue
% Change
Q3 2013   Revenue
Q4 2013   Revenue
% Change
$35.0
$36.0
2.9%
$35.3
$37.5
6.2%

Revenue grew fast from Q3 to Q4 from 2012 to 2013, driven by increases in iPhone sales.  Which is good.

However, we also see continued declining performance in iPads, which is not good.

Well, for one thing, the average contribution per unit of the iPhone increased from $581 to $619 as Apple introduced an upgraded iPhone product line.

However, there is the iPad, which had a $947 million decline in revenue and a decline in per unit price to $440 from $508.

Here is the breakdown by product category:

Product

Q4 2012 Units

Q4 2012 Revenue per   Product

Q4 2012 % of Total   Revenue Per Product

Q4 2013 Units

Q4 2013 Revenue per   Product

Q4 2013 % of Total   Revenue Per Product

iPhone

26,910

$16,645

46.3%

33,797

$19,510

52.1%

iPad

14,036

$7,133

19.8%

14,079

$6,186

16.5%

Mac

4,923

$6,617

18.4%

4,574

$5,624

15.0%

iPod

5,344

$820

2.3%

3,498

$573

1.5%

 Note: Units in thousands, dollars in millions.

The Christmas season should be an interesting and crucial one in Cupertino to see how Apple progresses as a growth company.

This entry was posted in Apple, Business Strategy, By the Numbers, Earnings Release and tagged , , , , , , , , . Bookmark the permalink.

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