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Apple Q2 results show iPhones soar, iPads slump as profits dip

Matthew Jarvis
Apple Q2 results show iPhones soar, iPads slump as profits dip

Apple has announced its financial results for Q2 2014.

During the period, which ended on March 29th, the firm saw quarterly revenue of $45.6 billion (£27.16bn) and quarterly net profit of $10.2 billion (£6.08bn), or $11.62 (£6.92) per diluted share.

The results are slightly down compared to Apple’s revenue of $43.6 billion (£25.97bn) and net profit of $9.5 billion (£5.66bn), or $10.09 (£6.01) per diluted share, during the same quarter a year ago.

Gross margin was 39.3 per cent during Q2 2014 – compared to 37.5 per cent in Q2 2013. International sales accounted for 66 per cent of the quarter’s revenue.

The reduced financials come despite a soaring rise in iPhone sales during the quarter, with 43.7 million handsets sold – an increase of over five million compared to the 37.4 million sold in the same quarter last year.

Tim Score, the CFO for ARM, the chip-maker behind the iPhone’s internal hardware, said that he expected demand for high-end smartphones to recover even further from low 2013 holiday period sales during the second half of 2014.

While Apple’s smartphones might be doing well, its iPad tablets are failing to see the same growth.

The firm sold 16.4 million iPads during Q2 2014, compared to 20 million sales in Q2 2013.

However, Apple CEO Tim Cook did reveal that another of Apple’s products had been steadily selling – with 20 million of the Apple TVs sold since the first iteration of the streaming box hit shelves in 2007.

In addition, Apple generated over $1 billion (£0.6bn) in sales of media content delivered through the devices during 2013.

“We’re very proud of our quarterly results, especially our strong iPhone sales and record revenue from services,” said Cook of the results.

“We’re eagerly looking forward to introducing more new products and services that only Apple could bring to market.

"We've sold over 210 million [iPads in total], which is more than we or anyone thought was possible," he said, concerning the weaker numbers this quarter.

"It's interesting to note that that's over twice as many iPhones as we had sold in a comparable period of time and over seven times as many iPods as we had sold in the period of time."

“We generated $13.5 billion in cash flow from operations and returned almost $21 billion in cash to shareholders through dividends and share repurchases during the March quarter,” added Peter Oppenheimer, Apple CFO.

“That brings cumulative payments under our capital return program to $66 billion.”

Apple added that it expected its Q3 2014 revenue to be between $36 billion (£21.44bn) and $38 billion (£22.63bn). 

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Tags: Apple, Financials, iPhone, results, ipad, profits, revenue, apple tv, 2014, q2

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