Tags revenue

Spotify complains Apple’s new App Store subscription changes don’t address core issues

Following news of incoming changes to Apple’s App Store that will benefit developers with a new subscription revenue split and paid search result ads, Spotify today outlined to The Verge why the improvements don’t address their issues with Apple’s policies.

Specifically, a Spotify representative noted the company’s inability to offer special deals to customers and lack of access to data into “why customers churn — or who even qualifies as a long-term subscriber.”

more…


Filed under: Apps Tagged: 85/15, App Store, discounts, Revenue, revenue split, Spotify, subscriptions

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Jordan Kahn

June 9th

Apple

Mac

Report: Apple could shutdown iTunes music downloads in favor of Apple Music within two years

A report from Digital Music News today citing sources close to Apple claims the company is currently considering a plan that would see it shutdown its iTunes Store music download business within two years. The move would mean the company would stop selling downloads of music from iTunes and instead focus entirely on monthly subscriptions to its Apple Music streaming service.

But the report does add that a 3 to 4 year timeline is also something being considered by Apple executives:

more…


Filed under: Apps Tagged: Apple, Apple Music, downloads, iTunes, Music, Revenue, sales

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Jordan Kahn

May 11th

Apple

Mac

Apple made more revenue from iPhone in a single quarter than Google has ever made from Android

Tim Cook

The lawsuit between Oracle and Google is inadvertently revealing some confidential information about the companies. It has already been disclosed that Google paid Apple a $1 billion fee in 2014 to keep Google as the default search provider for iOS Safari, as well as a revenue sharing agreement where Google gives a substantial portion of the iPhone search ad revenue to Apple.

Another lawyer from Oracle has also stated that Google has generated $22 billion in profit and $31 billion in revenue from Android in its lifetime, via Bloomberg. Although any number in the billions is impressive, it pales in comparison to Apple’s mobile platform profiteering. As highlighted by Quartz, Apple made more revenue from the iPhone in one single quarter, raking in $32 billion dollars worth of iPhone sales from July – September.

Obviously, there are some qualifications which explain the huge discrepancies somewhat. Most notably, Google doesn’t really make or sell its own hardware. Almost all Android revenue is derived from the Google Play Store developer revenue share (like Apple, Google has a 70/30 split) or ads shown from Google’s phones. Apple’s highly successful hardware business is better stacked to give higher margins, and with higher margins comes higher profits.

So, whilst this figure is more symbolic than anything, it is significant in showing Apple’s success with the iPhone in general. Remember: Apple and Samsung are the only manufacturers to make money from smartphones. Everyone else consistently loses money. The risks associated with the hardware business go often overlooked, but Apple is reaping the rewards from its success.

Even looking at software sales numbers, Apple is close to Google’s numbers. Apple last announced the App Store had raked in $40 billion for developers. That means Apple generated at least $12 billion in revenue from App Store. Adding in partner deals like the $1bn Google Search arrangement, iOS’s software-only numbers are approximately half of those reported for Android, which relies on only software app sales and ads for its business model. It’s impressive however you slice it.


Filed under: AAPL Company, iOS, iOS Devices, Tech Industry Tagged: Android, Apple, Google, money, profit, Revenue

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Benjamin Mayo

January 22nd

Apple

Mac

Apple again lands behind Samsung at #15 on Fortune Global 500 list, #2 by profit

gobal_500_icon-copy

Fortune is out with its latest Global 500 today ranking the world’s largest 500 companies by revenue and Apple has once again landed at #15 on the list. Apple comes in behind #1 Wal-mart, a long list of petroleum companies, Volkswagen, Toyota, and #13 Samsung.

After a bumpy start to 2014, Apple’s stock finished the year up 40%, adding nearly $200 billion to the company’s market value. A product pipeline that’s gotten Apple fanboys lining up all over again has certainly helped reenergize revenue growth: In addition to unveiling new categories like Apple Pay and Apple Watch, the company launched the iPhone 6, selling a record-breaking 10 million units in the first three days. As CEO Tim Cook recently told investors: “It’s tough to find something in the numbers not to like.” The normally low-profile Cook is breaking new ground in other ways too–in October, 2014 he came out as the first openly gay CEO of a Fortune 500 company.

In Fortune’s calculations, which account for total revenues for the fiscal year that ended before March 31, 2015, Apple came in with almost $183 billion in revenue, compared to around $195 billion for Samsung and $485 billion for #1 on the list, Walmart. Apple, however, comes in at #2 on the list when filtering by profit with $39.5 billion compared to $44.7 billion for the #1 company by profit, Industrial & Commer. Bank of China. Other tech companies coming in behind Apple for profit include Microsoft at #8 with $22 billion and Samsung at #9 with $21.9 billion in profit.

The new Fortune 500 Global list follows Apple’s Q3 2015 earnings report yesterday where the company reported record revenue for several products, hinted at over $1 billion in Apple Watch sales, and crossed the $200 billion in cash mark for the first time.


Filed under: AAPL Company Tagged: $200 billion, 500 Global, AAPL, Apple, fortune, profit, Revenue, Samsung

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Jordan Kahn

July 22nd

Apple

Mac

Apple announces Q3 2015 revenue of $49b: 47m iPhones, 10.9m iPads, 4.7m Macs

Tim Cook Apple Watch Apple Store

Right on schedule, Apple has shared its Q3 2015 earnings results reporting revenue of $49 billion and $10.7 billion in profit during the April to June period. Notably, the company’s Q3 period is the first that includes initial Apple Watch sales as the device first launched on April 24th.

Apple® today announced financial results for its fiscal 2015 third quarter ended June 27, 2015. The Company posted quarterly revenue of $49.6 billion and quarterly net profit of $10.7 billion, or $1.85 per diluted share. These results compare to revenue of $37.4 billion and net profit of $7.7 billion, or $1.28 per diluted share, in the year-ago quarter. Gross margin was 39.7 percent compared to 39.4 percent in the year-ago quarter. International sales accounted for 64 percent of the quarter’s revenue.

While Apple isn’t specifically breaking out Apple Watch sales (or iPod sales for that matter), the company does disclose iPhone, iPad, and Mac sales by unit:

  • iPhone: 47 million units
  • iPad: 10.9 million units
  • Mac: 4.7 million units

While Apple isn’t breaking out Apple Watch or Beats numbers, the ‘other services’ which includes those categories as well as iPods and Apple TV reports $2.6 billion in revenue.

Apple CEO Tim Cook said this about the company’s Q3 results:

“We had an amazing quarter, with iPhone revenue up 59 percent over last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch,” said Tim Cook, Apple’s CEO. “The excitement for Apple Music has been incredible, and we’re looking forward to releasing iOS 9, OS X El Capitan and watchOS 2 to customers in the fall.”

Luca Maestri, Apple’s chief financial officer, added this:

“In the third quarter our year-over-year growth rate accelerated from the first half of fiscal 2015, with revenue up 33 percent and earnings per share up 45 percent,” said Luca Maestri, Apple’s CFO. “We generated very strong operating cash flow of $15 billion, and we returned over $13 billion to shareholders through our capital return program.”

Today’s Q3 results follow last quarter’s $58 billion in revenue and 61.1 million iPhones sold, 12.6 million iPads sold, and 4.5 million Macs sold globally. During the same quarter a year ago with the iPhone 5s at the top of the lineup, Apple reported $37.4 billion in revenue and 35.2 million iPhones sold, 13.2 million iPads sold, and 4.4 million Mac sales. Apple reported $13.6 billion in profit last quarter and $7.7 billion during the same quarter a year ago.

The company’s quarterly conference call is scheduled for 2 PM Pacific/5 PM Eastern to discuss today’s results. Stay tuned for our live coverage of the call. Both Cook and Maestri usually review the quarterly results before fielding questions from analysts. With the first Apple Watch sales included in today’s report, the new device is sure to be a major topic of the call.

Apple’s complete Q3 earnings report is below:

Apple Reports Record Third Quarter Results

CUPERTINO, Calif.–(BUSINESS WIRE)–Apple® today announced financial results for its fiscal 2015 third quarter ended June 27, 2015. The Company posted quarterly revenue of $49.6 billion and quarterly net profit of $10.7 billion, or $1.85 per diluted share. These results compare to revenue of $37.4 billion and net profit of $7.7 billion, or $1.28 per diluted share, in the year-ago quarter. Gross margin was 39.7 percent compared to 39.4 percent in the year-ago quarter. International sales accounted for 64 percent of the quarter’s revenue.

“Management’s Discussion and Analysis of Financial Condition and Results of Operations”

The growth was fueled by record third quarter sales of iPhone® and Mac®, all-time record revenue from services and the successful launch of Apple Watch™.

“We had an amazing quarter, with iPhone revenue up 59 percent over last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch,” said Tim Cook, Apple’s CEO. “The excitement for Apple Music has been incredible, and we’re looking forward to releasing iOS 9, OS X El Capitan and watchOS 2 to customers in the fall.”

“In the third quarter our year-over-year growth rate accelerated from the first half of fiscal 2015, with revenue up 33 percent and earnings per share up 45 percent,” said Luca Maestri, Apple’s CFO. “We generated very strong operating cash flow of $15 billion, and we returned over $13 billion to shareholders through our capital return program.”

Apple is providing the following guidance for its fiscal 2015 fourth quarter:

• revenue between $49 billion and $51 billion

• gross margin between 38.5 percent and 39.5 percent

• operating expenses between $5.85 billion and $5.95 billion

• other income/(expense) of $400 million

• tax rate of 26.3 percent

Apple’s board of directors has declared a cash dividend of $.52 per share of the Company’s common stock. The dividend is payable on August 13, 2015, to shareholders of record as of the close of business on August 10, 2015.

Apple will provide live streaming of its Q3 2015 financial results conference call beginning at 2:00 p.m. PDT on July 21, 2015 at http://www.apple.com/quicktime/qtv/earningsq315. This webcast will also be available for replay for approximately two weeks thereafter.

This press release contains forward-looking statements including without limitation those about the Company’s estimated revenue, gross margin, operating expenses, other income/(expense), and tax rate. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the effect of competitive and economic factors, and the Company’s reaction to those factors, on consumer and business buying decisions with respect to the Company’s products; continued competitive pressures in the marketplace; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company’s gross margin; the inventory risk associated with the Company’s need to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; risks associated with the Company’s international operations; the Company’s reliance on third-party intellectual property and digital content; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; the Company’s dependency on the performance of distributors, carriers and other resellers of the Company’s products; the effect that product and service quality problems could have on the Company’s sales and operating profits; the continued service and availability of key executives and employees; war, terrorism, public health issues, natural disasters, and other circumstances that could disrupt supply, delivery, or demand of products; and unfavorable results of legal proceedings. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended September 27, 2014, its Form 10-Q for the fiscal quarter ended December 27, 2014, its Form 10-Q for the fiscal quarter ended March 28, 2015, and its Form 10-Q for the fiscal quarter ended June 27, 2015 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, the Mac and Apple Watch. Apple’s three software platforms — iOS, OS X and watchOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay and iCloud. Apple’s 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it.

NOTE TO EDITORS: For additional information visit Apple’s PR website (www.apple.com/pr), or call Apple’s Media Helpline at (408) 974-2042.

© 2015 Apple Inc. All rights reserved. Apple, the Apple logo, iPhone, Mac and Apple Watch are trademarks of Apple. Other company and product names may be trademarks of their respective owners.

Apple Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except number of shares which are reflected in thousands and per share amounts)
Three Months Ended
Nine Months Ended

June 27,
2015
June 28,
2014

June 27,
2015
June 28,
2014
Net sales $ 49,605 $ 37,432 $ 182,214 $ 140,672
Cost of sales (1) 29,924 22,697 109,136 86,144
Gross margin 19,681 14,735 73,078 54,528
Operating expenses:
Research and development (1) 2,034 1,603 5,847 4,355
Selling, general and administrative (1) 3,564 2,850 10,624 8,835
Total operating expenses 5,598 4,453 16,471 13,190
Operating income 14,083 10,282 56,607 41,338
Other income/(expense), net 390 202 846 673
Income before provision for income taxes 14,473 10,484 57,453 42,011
Provision for income taxes 3,796 2,736 15,183 10,968
Net income $ 10,677 $ 7,748 $ 42,270 $ 31,043

Earnings per share:
Basic $ 1.86 $ 1.29 $ 7.30 $ 5.06
Diluted $ 1.85 $ 1.28 $ 7.25 $ 5.03

Shares used in computing earnings per share:
Basic 5,729,886 6,012,635 5,788,922 6,136,147
Diluted 5,773,099 6,051,711 5,829,920 6,172,857

Cash dividends declared per share $ 0.52 $ 0.47 $ 1.46 $ 1.35

(1) Includes share-based compensation expense as follows:
Cost of sales $ 148 $ 115 $ 430 $ 334
Research and development $ 388 $ 313 $ 1,146 $ 902
Selling, general and administrative $ 320 $ 296 $ 1,095 $ 865

Apple Inc.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except number of shares which are reflected in thousands and par value)
June 27,
2015

September 27,
2014
ASSETS:

Current assets:
Cash and cash equivalents $ 15,319 $ 13,844
Short-term marketable securities 19,384 11,233
Accounts receivable, less allowances of $83 and $86, respectively 10,370 17,460
Inventories 2,042 2,111
Deferred tax assets 5,010 4,318
Vendor non-trade receivables 9,537 9,759
Other current assets 9,291 9,806
Total current assets 70,953 68,531

Long-term marketable securities 168,145 130,162
Property, plant and equipment, net 21,149 20,624
Goodwill 5,044 4,616
Acquired intangible assets, net 3,779 4,142
Other assets 4,081 3,764
Total assets $ 273,151 $ 231,839

LIABILITIES AND SHAREHOLDERS’ EQUITY:

Current liabilities:
Accounts payable $ 26,474 $ 30,196
Accrued expenses 22,724 18,453
Deferred revenue 9,088 8,491
Commercial paper 4,499 6,308
Current portion of long-term debt 2,500 0
Total current liabilities 65,285 63,448

Deferred revenue, non-current 3,474 3,031
Long-term debt 47,419 28,987
Other non-current liabilities 31,296 24,826
Total liabilities 147,474 120,292

Commitments and contingencies

Shareholders’ equity:
Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 5,705,400 and 5,866,161 shares issued and outstanding, respectively 26,327 23,313
Retained earnings 98,252 87,152
Accumulated other comprehensive income 1,098 1,082
Total shareholders’ equity 125,677 111,547
Total liabilities and shareholders’ equity $ 273,151 $ 231,839

Apple Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)
Nine Months Ended
June 27, 2015 June 28, 2014

Cash and cash equivalents, beginning of the period $ 13,844 $ 14,259

Operating activities:
Net income 42,270 31,043
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization 8,138 5,977
Share-based compensation expense 2,671 2,101
Deferred income tax expense 2,820 3,154
Changes in operating assets and liabilities:
Accounts receivable, net 7,090 2,314
Inventories 69 170
Vendor non-trade receivables 222 1,486
Other current and non-current assets 2,286 931
Accounts payable (3,263) (2,531)
Deferred revenue 1,040 1,394
Other current and non-current liabilities 4,448 424
Cash generated by operating activities 67,791 46,463

Investing activities:
Purchases of marketable securities (137,524) (160,662)
Proceeds from maturities of marketable securities 9,916 15,111
Proceeds from sales of marketable securities 80,635 126,827
Payments made in connection with business acquisitions, net (230) (898)
Payments for acquisition of property, plant and equipment (7,629) (5,745)
Payments for acquisition of intangible assets (201) (216)
Other 134 7
Cash used in investing activities (54,899) (25,576)

Financing activities:
Proceeds from issuance of common stock 324 435
Excess tax benefits from equity awards 684 562
Taxes paid related to net share settlement of equity awards (1,332) (839)
Dividends and dividend equivalents paid (8,597) (8,297)
Repurchase of common stock (22,000) (28,000)
Proceeds from issuance of long-term debt, net 21,312 11,960
Change in commercial paper, net (1,808) 2,010
Cash used in financing activities (11,417) (22,169)

Increase/(decrease) in cash and cash equivalents 1,475 (1,282)
Cash and cash equivalents, end of the period $ 15,319 $ 12,977

Supplemental cash flow disclosure:
Cash paid for income taxes, net $ 10,604 $ 8,013
Cash paid for interest $ 427 $ 322

Apple Inc.
Q3 2015 Unaudited Summary Data
(Units in thousands, Revenue in millions)

Q3 2015 Q2 2015 Q3 2014 Sequential Change Year/Year Change

Operating Segments Revenue Revenue Revenue Revenue Revenue
Americas $20,209 $21,316 $17,574 – 5% 15%
Europe 10,342 12,204 8,659 – 15% 19%
Greater China 13,230 16,823 6,230 – 21% 112%
Japan 2,872 3,457 2,627 – 17% 9%
Rest of Asia Pacific 2,952 4,210 2,342 – 30% 26%
Total Apple $49,605 $58,010
$37,432

– 14% 33%

Q3 2015 Q2 2015 Q3 2014 Sequential Change Year/Year Change

Product Summary Units Revenue Units Revenue Units Revenue Units Revenue Units Revenue
iPhone (1) 47,534 $31,368 61,170 $40,282 35,203 $19,751 – 22% – 22% 35% 59%
iPad (1) 10,931 4,538 12,623 5,428 13,276 5,889 – 13% – 16% – 18% – 23%
Mac (1) 4,796 6,030 4,563 5,615 4,413 5,540 5% 7% 9% 9%
Services (2) 5,028 4,996 4,485 1% 12%
Other Products (1)(3) 2,641 1,689 1,767 56% 49%
Total Apple $49,605 $58,010 $37,432 – 14% 33%
(1)
Includes deferrals and amortization of related non-software services and software upgrade rights.

(2)

Includes revenue from iTunes, AppleCare, Apple Pay, licensing and other services.

(3)

Includes sales of Apple TV, Apple Watch, Beats Electronics, iPod and Apple-branded and third-party accessories.


Filed under: AAPL Company Tagged: AAPL, Apple watch, earnings, iPad, iPhone, Mac, Revenue, sales

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Zac Hall

July 21st

Apple

Mac

Apple ranks in at number 5 on latest Fortune 500 list

Fortune-500-Apple

Apple ranks in at number 5 on the latest Fortune 500, the annual list that ranks US companies by revenue, this time for fiscal year 2014. The company maintains its same position as last year behind Berkshire Hathaway (no. 4), Chevron (no. 3), Exxon Mobil (no. 2), and Wal-Mart Stores (no. 1).

While Apple comes in at fifth place for revenue, Fortune notes that it “boasts both the biggest profits of any company on the list ($39.5 billion) and the highest market value (more than $700 billion).”

After a bumpy start to 2014, Apple’s stock finished the year up 40%, adding nearly $200 billion to the company’s market value. A product pipeline that’s gotten Apple fanboys lining up all over again has certainly helped reenergize revenue growth: In addition to unveiling new categories like Apple Pay and Apple Watch, the company launched the iPhone 6, selling a record-breaking 10 million units in the first three days. As CEO Tim Cook recently told investors: “It’s tough to find something in the numbers not to like.” The normally low-profile Cook is breaking new ground in other ways too—in October, 2014 he came out as the first openly gay CEO of a Fortune 500 company.

It was back in 2013 that Apple jumped into the top 10 for the first time as other tech companies — including Facebook, Microsoft, and Amazon — barely made the list. Other tech companies on the list this year include AT&T (no. 12), Verizon (no. 15), HP (no. 19), IBM (no. 24), Amazon (no. 29), Microsoft (no. 31), and Google (no. 40), among others further down on the list.


Filed under: AAPL Company, Tech Industry Tagged: 2015, AAPL, Apple, fiscal year 2014, Fortune 500, list, market cap, no. 5, Revenue, Tim Cook

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Jordan Kahn

June 4th

Apple

Mac

Apple announces Q2 2015 revenue of $58b: 61.1m iPhones, 12.6m iPads, 4.5m Macs

Christy Turlington Burns & Tim Cook

Apple is out with its Q2 2015 earnings results today reporting $58 billion in revenue including $13.6 billion in profit earned during the first three months of this year.

Apple® today announced financial results for its fiscal 2015 second quarter ended March 28, 2015. The Company posted quarterly revenue of $58 billion and quarterly net profit of $13.6 billion, or $2.33 per diluted share. These results compare to revenue of $45.6 billion and net profit of $10.2 billion, or $1.66 per diluted share, in the year-ago quarter. Gross margin was 40.8 percent compared to 39.3 percent in the year-ago quarter. International sales accounted for 69 percent of the quarter’s revenue.

Aside from revenue and profit, Apple disclosed sales numbers or revenue for the these categories:

  • iPhone: 61.1 million units
  • iPad: 12.6 million units
  • Mac: 4.5 million units

Totals:

  • Revenue: $58 billion
  • EPS: $2.33 per share

Apple CEO Tim Cook had this to say:

“We are thrilled by the continued strength of iPhone, Mac and the App Store, which drove our best March quarter results ever,” said Tim Cook, Apple’s CEO. “We’re seeing a higher rate of people switching to iPhone than we’ve experienced in previous cycles, and we’re off to an exciting start to the June quarter with the launch of Apple Watch.”

Apple CFO Luca Maestri added:

“The tremendous customer demand for our products and services in the March quarter drove revenue growth of 27 percent and EPS growth of 40 percent,” said Luca Maestri, Apple’s CFO. “Cash flow from operations was also outstanding at $19.1 billion.”

Following last quarter’s record revenue and blockbuster iPhone numbers, the attention today ahead of the call largely focused on if Apple could maintain strong iPhone numbers after the initial launch and holiday season. Apple has previously shared that it does not plan to disclose Apple Watch sales numbers, which began earlier this month and will be included in the “Other” category with iPods during the company’s next quarterly report.

Apple’s Q2 2015 numbers compare to last quarter’s results of $74.6 billion in revenue and sales of 74 million iPhones, 21.4 million iPads, and 5.5 million Macs. For the same quarter a year ago, Apple reported $45.6 billion in revenue and sales of 43.7 million iPhones, 16.3 million iPads, and 4.1 million Macs. Compare also to profit last quarter of $18 million and a year ago of $9.5 billion.

Apple will hold its conference call soon at 2 PM Pacific/5 PM Eastern to discuss the company’s quarterly report. Stay tuned for our coverage of the call. Cook and Maestri typically share prepared remarks then address product and financial questions from analysts on the call.

The full Q2 earnings report is below:

Q12015-earnings

Apple Reports Record Second Quarter Results

CUPERTINO, Calif.–(BUSINESS WIRE)–Apple® today announced financial results for its fiscal 2015 second quarter ended March 28, 2015. The Company posted quarterly revenue of $58 billion and quarterly net profit of $13.6 billion, or $2.33 per diluted share. These results compare to revenue of $45.6 billion and net profit of $10.2 billion, or $1.66 per diluted share, in the year-ago quarter. Gross margin was 40.8 percent compared to 39.3 percent in the year-ago quarter. International sales accounted for 69 percent of the quarter’s revenue.

“Cash flow from operations was also outstanding at $19.1 billion.”

The growth was fueled by record second quarter sales of iPhone® and Mac® and all-time record performance of the App Store℠.

“We are thrilled by the continued strength of iPhone, Mac and the App Store, which drove our best March quarter results ever,” said Tim Cook, Apple’s CEO. “We’re seeing a higher rate of people switching to iPhone than we’ve experienced in previous cycles, and we’re off to an exciting start to the June quarter with the launch of Apple Watch.”

“The tremendous customer demand for our products and services in the March quarter drove revenue growth of 27 percent and EPS growth of 40 percent,” said Luca Maestri, Apple’s CFO. “Cash flow from operations was also outstanding at $19.1 billion.”

Apple is providing the following guidance for its fiscal 2015 third quarter:

• revenue between $46 billion and $48 billion

• gross margin between 38.5 percent and 39.5 percent

• operating expenses between $5.65 billion and $5.75 billion

• other income/(expense) of $350 million

• tax rate of 26.3 percent

Apple will provide live streaming of its Q2 2015 financial results conference call beginning at 2:00 p.m. PDT on April 27, 2015 at www.apple.com/quicktime/qtv/earningsq215. This webcast will also be available for replay for approximately two weeks thereafter.

This press release contains forward-looking statements including without limitation those about the Company’s estimated revenue, gross margin, operating expenses, other income/(expense), and tax rate. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the effect of competitive and economic factors, and the Company’s reaction to those factors, on consumer and business buying decisions with respect to the Company’s products; continued competitive pressures in the marketplace; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company’s gross margin; the inventory risk associated with the Company’s need to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; risks associated with the Company’s international operations; the Company’s reliance on third-party intellectual property and digital content; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; the Company’s dependency on the performance of distributors, carriers and other resellers of the Company’s products; the effect that product and service quality problems could have on the Company’s sales and operating profits; the continued service and availability of key executives and employees; war, terrorism, public health issues, natural disasters, and other circumstances that could disrupt supply, delivery, or demand of products; and unfavorable results of legal proceedings. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended September 27, 2014, its Form 10-Q for the fiscal quarter ended December 27, 2014, and its Form 10-Q for the fiscal quarter ended March 28, 2015 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.

NOTE TO EDITORS: For additional information visit Apple’s PR website (www.apple.com/pr), or call Apple’s Media Helpline at (408) 974-2042.

© 2015 Apple Inc. All rights reserved. Apple, the Apple logo, Mac, Mac OS, Macintosh, iPhone and App Store are trademarks of Apple. Other company and product names may be trademarks of their respective owners.

Apple Inc.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In millions, except number of shares which are reflected in thousands and per share amounts)
Three Months Ended Six Months Ended
March 28,
2015
March 29,
2014
March 28,
2015
March 29,
2014
Net sales $ 58,010 $ 45,646 $ 132,609 $ 103,240
Cost of sales (1) 34,354 27,699 79,212 63,447
Gross margin 23,656 17,947 53,397 39,793
Operating expenses:
Research and development (1) 1,918 1,422 3,813 2,752
Selling, general and administrative (1) 3,460 2,932 7,060 5,985
Total operating expenses 5,378 4,354 10,873 8,737
Operating income 18,278 13,593 42,524 31,056
Other income/(expense), net 286 225 456 471
Income before provision for income taxes 18,564 13,818 42,980 31,527
Provision for income taxes 4,995 3,595 11,387 8,232
Net income $ 13,569 $ 10,223 $ 31,593 $ 23,295
Earnings per share:
Basic $ 2.34 $ 1.67 $ 5.43 $ 3.76
Diluted $ 2.33 $ 1.66 $ 5.39 $ 3.74
Shares used in computing earnings per share:
Basic 5,793,799 6,123,302 5,818,411 6,197,903
Diluted 5,834,858 6,156,699 5,858,330 6,233,430
Cash dividends declared per share $ 0.47 $ 0.44 $ 0.94 $ 0.88
(1) Includes share-based compensation expense as follows:
Cost of sales $ 142 $ 110 $ 282 $ 219
Research and development $ 384 $ 300 $ 758 $ 589
Selling, general and administrative $ 401 $ 286 $ 775 $ 569
Apple Inc.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(In millions, except number of shares which are reflected in thousands and par value)
March 28,
2015
September 27,
2014
ASSETS:
Current assets:
Cash and cash equivalents $ 14,489 $ 13,844
Short-term marketable securities 18,607 11,233
Accounts receivable, less allowances of $83 and $86, respectively 10,905 17,460
Inventories 2,396 2,111
Deferred tax assets 5,141 4,318
Vendor non-trade receivables 7,259 9,759
Other current assets 9,094 9,806
Total current assets 67,891 68,531
Long-term marketable securities 160,443 130,162
Property, plant and equipment, net 20,151 20,624
Goodwill 4,711 4,616
Acquired intangible assets, net 4,061 4,142
Other assets 3,937 3,764
Total assets $ 261,194 $ 231,839
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable $ 23,159 $ 30,196
Accrued expenses 22,827 18,453
Deferred revenue 8,944 8,491
Commercial paper 3,799 6,308
Total current liabilities 58,729 63,448
Deferred revenue – non-current 3,571 3,031
Long-term debt 40,072 28,987
Other non-current liabilities 29,816 24,826
Total liabilities 132,188 120,292
Commitments and contingencies
Shareholders’ equity:
Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 5,762,278 and 5,866,161 shares issued and outstanding, respectively 25,376 23,313
Retained earnings 100,920 87,152
Accumulated other comprehensive income 2,710 1,082
Total shareholders’ equity 129,006 111,547
Total liabilities and shareholders’ equity $ 261,194 $ 231,839
Apple Inc.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)
Six Months Ended
March 28, 2015 March 29, 2014
Cash and cash equivalents, beginning of the period $ 13,844 $ 14,259
Operating activities:
Net income 31,593 23,295
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization 5,054 4,031
Share-based compensation expense 1,815 1,377
Deferred income tax expense 1,879 2,059
Changes in operating assets and liabilities:
Accounts receivable, net 6,555 3,401
Inventories (285) (65)
Vendor non-trade receivables 2,500 1,419
Other current and non-current assets 2,448 14
Accounts payable (5,428) (2,375)
Deferred revenue 993 1,414
Other current and non-current liabilities 5,679 1,638
Cash generated by operating activities 52,803 36,208
Investing activities:
Purchases of marketable securities (92,523) (90,360)
Proceeds from maturities of marketable securities 5,871 10,869
Proceeds from sales of marketable securities 48,924 80,241
Payments made in connection with business acquisitions, net (115) (559)
Payments for acquisition of property, plant and equipment (5,586) (3,367)
Payments for acquisition of intangible assets (155) (163)
Other 88 (23)
Cash used in investing activities (43,496) (3,362)
Financing activities:
Proceeds from issuance of common stock 309 341
Excess tax benefits from equity awards 357 363
Taxes paid related to net share settlement of equity awards (608) (430)
Dividends and dividend equivalents paid (5,544) (5,430)
Repurchase of common stock (12,000) (23,000)
Proceeds from issuance of long-term debt, net 11,332 0
Repayments of commercial paper, net (2,508) 0
Cash used in financing activities (8,662) (28,156)
Increase in cash and cash equivalents 645 4,690
Cash and cash equivalents, end of the period $ 14,489 $ 18,949
Supplemental cash flow disclosure:
Cash paid for income taxes, net $ 7,058 $ 5,369
Cash paid for interest $ 220 $ 161
Apple Inc.
Q2 2015 Unaudited Summary Data
(Units in thousands, Revenue in millions)
Q2’15 Q1’15 Q2’14 Sequential Change Year/Year Change
Operating Segments Revenue Revenue Revenue Revenue Revenue
Americas $21,316 $30,566 $17,982 – 30% 19%
Europe 12,204 17,214 10,941 – 29% 12%
Greater China 16,823 16,144 9,835 4% 71%
Japan 3,457 5,448 4,047 – 37% – 15%
Rest of Asia Pacific 4,210 5,227 2,841 – 19% 48%
Total Apple $58,010 $74,599 $45,646 – 22% 27%
Q2’15 Q1’15 Q2’14 Sequential Change Year/Year Change
Product Summary Units Revenue Units Revenue Units Revenue Units Revenue Units Revenue
iPhone (1) 61,170 $40,282 74,468 $51,182 43,719 $26,064 – 18% – 21% 40% 55%
iPad (1) 12,623 5,428 21,419 8,985 16,350 7,610 – 41% – 40% – 23% – 29%
Mac (1) 4,563 5,615 5,519 6,944 4,136 5,519 -17% – 19% 10% 2%
Services (2) 4,996 4,799 4,573 4% 9%
Other Products (1)(3) 1,689 2,689 1,880 – 37% – 10%
Total Apple $58,010 $74,599 $45,646 – 22% 27%
(1) Includes deferrals and amortization of related non-software services and software upgrade rights.
(2) Includes revenue from the iTunes Store, App Store, Mac App Store, iBooks Store, AppleCare, Apple Pay, licensing and other services.
(3) Includes sales of iPod, Apple TV, Beats Electronics and Apple-branded and third-party accessories.


Filed under: AAPL Company, iOS Devices, Mac Tagged: 2015, Apple, Apple earnings, iPad, iPhone, Mac, Q2, Revenue

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Zac Hall

April 27th

Apple

Mac

Apple’s easy finance initiatives in India pay off as local revenue breaks a billion dollars – report

india

Times of India is reporting that Apple is expected to have hit $1B in revenue in India in the financial year ended on 31st March – up 42% year-on-year, and a tripling of revenue over the past three years. India is one of the so-called BRIC nations (Brazil, Russia, India, China) where Apple is expecting to see a large chunk of its future growth.

It had previously been reported that Apple sold half a million iPhones in the final calendar quarter of 2014, and Cybermedia Research estimates that it sold 1.3M phones in the full financial year. If true, “over $1B revenue is inevitable,” says the report … 

Apple launched an aggressive trade-in program in India 2013 and has more recently been offering financing to help consumers spread the cost over time. Plans are also underway to support a network of 500 new resellers in the country as Apple pushes into smaller towns and cities where sales are currently dominated by Samsung.

Apple has not yet filed its accounts for the country, and has not commented on the claim.


Filed under: AAPL Company Tagged: AAPL, Apple Inc, Apple India, India, iPhone, Revenue, Samsung

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Ben Lovejoy

April 8th

Apple

Mac

AAPL shares reach new record high of $120 following Apple’s record Q1 earnings report

AAPL 120

Apple’s stock soared the day after the company reported its record breaking quarter with over $74 billion in revenue and more than 74 million iPhones sold, and now Apple’s stock has reached a new all-time high during trading. The company briefly touched on $120/share during trading this morning and is on track to break its previous record closing high soon.

AAPL set its previous record high of $119.75 in late November after the announcements of the iPhone 6 and iPhone 6 Plus in September alongside the reveal of the Apple Watch; the company also released new iPads in October. Apple’s current highest closing price measures in at $119, just under its trading high reached today.

Apple CEO Tim Cook spoke earlier this week during the company’s quarterly conference call on the company’s record iPhone sales while adding that the company is optimistic about continued growth in the future. The Apple CEO also offered a more specific timetable for the release of the Apple Watch, specifying that the Watch development puts it on track to be released in April. Previously the company only promised ‘early 2015′, which Cook said to Apple includes the first four months of the year.

AAPL stock $120


Filed under: AAPL Company Tagged: AAPL, earnings, iPhone 6, iphone 6 plus, market, quarter, record quarter, Revenue, sales, stock

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Zac Hall

January 30th

Apple

Mac

Tim Cook says over 85% of new iPhone sales are switchers, with the majority of those being Android

aapl

While few would expect the record-breaking surge in iPhone sales generated by the larger-screened models to continue into subsequent quarters, Tim Cook argued in a WSJ interview that the potential is there.

Apple Chief Executive Tim Cook, not surprisingly, argued that the demand is more than temporary. He said that fewer than 15% of recent iPhone buyers upgraded from other iPhones and that the majority switched from smartphones running Google’s Android operating system.

“We certainly believe there are legs to it,” said Mr. Cook of the iPhone sales surge.

Cook noted during the Q1 earnings call that the current iPhone lineup had experienced “the highest Android switcher rate in any of the last three launches.” With CIRP data suggesting that the US rate of switching from Android to iOS has remained broadly constant, that suggests the bulk of switchers have been outside the US–China in particular … 

Not even Cook would suggest that a company of Apple’s size could enjoy a 30% jump in year-on-year revenue two quarters running, but the company has issued guidance suggesting growth of between 14% and 20% this quarter.

Cook’s optimism stems from the fact that most iPhone owners have not yet upgraded. Add late upgraders to a continual stream of switchers, and you have, he believes, a recipe for continued strong growth. The Apple CEO also insisted that there remained upside potential for the iPad, despite a 22% drop in revenue.

Analysts are not so sure. While a Thomson Reuters poll of analysts found that the consensus view was for 22% revenue growth over the full financial year ending this September, they expect the bubble effect of the switch to larger displays to end by then, with growth dropping back to just 4% the following year.

Cook would argue that slowing growth in iPhone sales will be compensated for by other revenue streams, including the Apple Watchlaunching in April–and both domestic growth and international expansion for Apple Pay. The App Store, too, is growing at a rate that would see it become a significant contributor to Apple’s total earnings. One thing for sure: it’s going to be an interesting ride …


Filed under: AAPL Company, iOS Devices Tagged: AAPL, Android, Android (operating system), Android switchers, App Store, App Store (iOS), Apple Inc, Apple watch, china, CIRP, earnings, iOS, iPad, iPhone 6, iphone 6 plus, Revenue, switchers, Thomson Reuters, Tim Cook, upgrades

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Ben Lovejoy

January 29th

Apple

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