After launching a wave of stylish new products in the second half of 2014, Apple posted their most profitable quarterly earnings ever on Monday as the Cupertino, CA company prepares for the upcoming holiday quarter with greater confidence.
CEO Tim Cook said during the conference call that it’s been an “exciting” and very “busy time” over the last three months.
“With amazing innovations in our new iPhones, iPads and Macs, as well as iOS 8 and OS X Yosemite, we are heading into the holidays with Apple’s strongest product lineup ever. We are also incredibly excited about Apple Watch and other great products and services in the pipeline for 2015” Apple CEO Tim Cook said on Monday.
Apple sold 39.27 million iPhones for the quarter, up 16 percent from 33.79 million units in the same quarter a year ago.
Apple had only 1 week during the past quarter to sell their newest iPhone 6 lineup but they started taking orders in September.
Apple CEO Tim Cook said that new iPhones will be available in 69 countries by the end of October.
Apple set an all-time quarterly record for Mac sales coming at a time when PC sales are lagging with many other companies.
Apple sold 5.5 million Macs, rising 21 percent, and totaling $6.6 billion in sales.
“Being up 21 percent in a market that is shrinking— it just doesn’t get any better than that” CEO Tim Cook said during the conference call.
The blow out quarterly numbers with Macs were likely helped by price cuts, including a discount with the MacBook Pro lineup in August.
iPad sales were not quite as impressive.
iPad sales dropped 13 percent year over year to 12.3 million units as fewer consumers decided to upgrade their iPads compared to iPhones.
Competition is also strong in the tablet market from Android tablets and Microsoft’s Surface tablet.
Apple also reported that they reduced their iPad channel inventory near the end of June in preparation for the arrival of the new iPads, announced last Thursday.
International sales accounted for 60 percent of Apple’s quarterly revenue.
Overall, Apple’s quarterly earnings per share (EPS) was stellar, rising 20 percent over the quarter while their quarterly revenue grew 12 percent and profits were up 13 percent.
“Our strong business performance drove EPS growth of 20 percent and a record $13.3 billion in cash flow from operations in the September quarter,” said Luca Maestri, Apple’s CFO.
Apple’s 4th quarter fiscal 2014 results ending September 27, 2014 shows the Company had quarterly revenue of $42.1 billion and quarterly net profit of $8.5 billion, or $1.42 per diluted share- versus- revenue of $37.5 billion and net profit of $7.5 billion, or $1.18 per diluted share, in same quarter a year ago.
Apple is providing guidance for its fiscal 2015 first quarter that includes revenue between $63.5 billion and $66.5 billion, gross margin between 37.5 percent and 38.5 percent. Operating expenses between $5.4 billion and $5.5 billion.