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Apple “Beats The Street” with $43.6B of Gross Revenues for March, 2013 Quarter, plus iPad Sales increased a whopping 60%, plus Higher than Expected iPhone Sales, plus Record iTunes Sales, plus Dividend Increased to $3.05/Qtr, a 15% increase ⭐⭐⭐⭐⭐📍

April 24, 2013

Introduction and Perspective: These articles are created to inform a diverse audience, whether it be NEWS relating to Photography, Digital Cameras, Lenses, Photo Editing Software, Smart Phones, Laptops, iPads, iPhones, and products that attach to these devices, and of course Health & Wellness. Simply news-worthy topics of interest. The purpose is to inform those interested based on what is believed to be reliable sources.

Apple “Beats The Street” with $43.6B of Gross Revenues for March, 2013 Quarter, plus iPad Sales increased a whopping 60%, plus Higher than Expected iPhone Sales, plus Record iTunes Sales, plus Dividend Increased to $3.05/Qtr, a 15% increase. The bears were wrong BIG time. Apple beat Wall Street financial analysts’ expectations by huge margins this afternoon. The company had been steadily losing value as analyst-after-analyst expressed anxiety about the company’s outlook. These Wall Street back-room MBA “Analysts” need to get out of the office and learn what makes companies tick.

✔ Apple reported quarterly gross revenues of $43.6 billion, compared with a $42.3 billion consensus estimate. Second quarter revenues in 2012 were $39.2 billion. Growth was driven by better-than-expected iPhone and iPad sales. Last quarter Apple reported $54 billion in revenue and $13 billion in profit.

✔ iPhone: 37.4 million (vs. 35.1 million a year ago), this is at a rate of 150 million iPhones in 2013.

✔ iPad: 19.5 million (vs. 11.8 million a year ago), this is a 60% increase, and 80 million iPads in 2013

✔ Macs: 4 million sold last year (vs. about 4 million in 2012), even though PC market is down 14%

✔ iTunes: $4 billion ($16 billion annualized sales-rate)

✔ China revenue: $8.8 billion

✔ Quarterly Profit was $9.5 billion.

✔ Cash to shareholders: $100 billion share buy-back by year-end 2015, about $33 Billion/Year.

✔ Gross revenues of $43.6 billion/quarterly

✔ Dividend Increase to investors to $3.05/quarter equating to about a 3% yield, $11 Billion payout/year

✔ Apple has 401 stores world-wide; average revenue per store average $13.1 million/quarter. Add 30 new stores, 20 store renovations.

✔ Apple announced an aggressive, $100 billion stock repurchase program and a $12.20/year dividend, represdenting a 15% higher dividend payment. These two announcements have more than mitigated any disappointment over reduced margins.

✔ CEO Tim Cook: Revenues were $98 billion, which is “unprecedented.” But says fiscal 2012 high growth is hurting the company by comparison to this year. He says he’s been frustrated by the stock-price decline but the company will focus on the long term and says that the company continues to see great opportunity ahead.

✔ Apple Teams are at work on “exciting” new products. We’ve “got a lot more surprises” in the works. Cook is saying the company will be returning more cash to shareholders: $100 billion by the end of 2015 in the form of share repurchases (roughly $30 billion per year). Could there be a better investment than to a very strong company trading at a earnings multiple of 9X.

✔ The company is also increasing its dividend to investors to $3.05/quarter equating to about a 3% yield on a very strong, profitable company trading at 9x Earnings. Apple’s annual dividend payments are roughly $11 billion, the most paid to shareholders of any company in the world. Oppenheimer discussing Apple’s share buy back (“capital return”) program and Apple’s intention to use debt to partly finance the program.

✔ CFO Peter Oppenheimer: reviewing the numbers, says iPhone is number 1 in Japan, which is “unprecedented” for a non-Japanese company. iPhone has greater loyality and customer satisfaction than competing smartphones. iPad sales “more than doubled” YoY in China and Japan.

✔ Not able to meet iPad Mini demand in the Dec, 2012 quarter, but doing so this March, 2013 quarter. The iPad is “widely adopted” by business customers as well.

✔ Global computer/PC market declined by 14%; Mac sales declined by only 2%.

✔ There are now 401 Apple stores world-wide; average revenue per store was $13.1 million/quarter. Apple had $144 billion in cash at the end of the quarter, of which $102 billion is offshore.

✔ Apple anticipates next quarter’s revenue to be between $33 and $35 billion range vs. $35 billion a year ago.

✔ Analyst questions: Financial analysts very focused on gross margin declines. CFO Oppenheimer offers several explanations (“headwinds,” “loss of leverage”) for the declines. However gross margins also anticipated to be lower next quarter.

✔ Question about revenue in China: Has Apple hit a wall? (so to speak). Cook says revenue $8.8 billion in the quarter in China. He’s very upbeat and saying things are very strong. Revenue up 18% on a “sell through” basis.

✔ China has “unusually large number of first-time smartphone buyers.” Apple has made iPhone 4 very price-attractive for first-time iPhone buyers.

✔ Asked about competitive landscape, Cook says: Android and Samsung “are tough competitors” but Apple “has the best products by far.” We feel confident about the product pipeline. “We have the best ecosystem by far.”

✔ Asked about timing of new product launches, Cook says “We’ve got some really great stuff coming in the fall and across all of 2014.”

✔ Asked about Apple competitive position (again) and growth of iPhones vs. growth of smartphone market overall. Cook says he’s confident about the iPad. He sidesteps the question and cites consumer satisfaction data, usage data, loyalty. “We see first-time buyers” in developing countries and “we’ve made the iPhone 4″ much more affordable in those markets… (Likely do to relatively low Carrier-subsidies when clients sign 2-year contracts).

✔ Asked about screen size, Tim Cook says that “iPhone 5 has the best display in the industry.” However, he acknowledges that “some customers” value screen size. He says that larger displays require trade-offs. He adds that the company won’t ship a larger iPhone display “while these trade-offs exist.” (I read this comment as a slight opening-of-the-door, as Apple is likely looking at eliminating these “trade-offs.”)

✔ About mobile payments, Tim Cook says that the industry “Apple is just getting started,” implying that Apple will continue to fine-tune their solutions before entering this arena.

✔ “Market for PCs incredibly weak,” says Tim Cook. He adds there’s some cannibalization of Mac sales by the iPad but he “doesn’t think it’s a big number.” Says Apple is still committed to Mac and that iPad sales may benefit the Mac by bringing new people into the Apple ecosystem.

✔ Cook said that the iPad has been adopted by 95% of Fortune 500 and 89% of the Global 500.

✔ The call ended with a question about the Apple ecosystem and CFO Oppenheimer reporting, “We’re paying our developers more than $1 billion every quarter.”

🔴 Listen to a REPLAY of today’s conference call, Link (A) :

🔴 View Apple’s Press Release of their March 31, 2013 Quarterly Report, Link (B) :

🔴 View Apple’s March 31, 2013 Quarterly Summary Data, Link (C) :

🔴 (A)

🔴 (B)

🔴 (C)

We have drawn the GREEN Lines to show the data-direction of the historical statistics. It is reasonable to deduce, that future periods may follow a similar upward pitch, assuming domestic and global economic conditions remain relatively consistent with the periods display.

Article Name: Apple “Beats The Street” with $43.6B plus Higher than Expected iPhone & iPad Sales, and Record iTunes Sales

Rating: ⭐⭐⭐⭐⭐📍

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