Apple Puts Nearly 50 Million More E-Reading Devices Into Readers’ Hands in Fourth Quarter

Related: Ebook Subscription Services Should Look to Youth, Smartphones 

[Press Release]

Full release, including charts

iPhone Sales Grow 26% to Establish New September Quarter Record

Apple® today announced financial results for its fiscal 2013 fourth quarter ended September 28, 2013. The Company posted quarterly revenue of $37.5 billion and quarterly net profit of $7.5 billion, or $8.26 per diluted share. These results compare to revenue of $36 billion and net profit of $8.2 billion, or $8.67 per diluted share, in the year-ago quarter. Gross margin was 37 percent compared to 40 percent in the year-ago quarter. International sales accounted for 60 percent of the quarter’s revenue.

The Company sold 33.8 million iPhones, a record for the September quarter, compared to 26.9 million in the year-ago quarter. Apple also sold 14.1 million iPads during the quarter, compared to 14 million in the year-ago quarter. The Company sold 4.6 million Macs, compared to 4.9 million in the year-ago quarter.

Apple’s Board of Directors has declared a cash dividend of $3.05 per share of the Company’s common stock. The dividend is payable on November 14, 2013, to shareholders of record as of the close of business on November 11, 2013.

“We’re pleased to report a strong finish to an amazing year with record fourth quarter revenue, including sales of almost 34 million iPhones,” said Tim Cook, Apple’s CEO. “We’re excited to go into the holidays with our new iPhone 5c and iPhone 5s, iOS 7, the new iPad mini with Retina Display and the incredibly thin and light iPad Air, new MacBook Pros, the radical new Mac Pro, OS X Mavericks and the next generation iWork and iLife apps for OS X and iOS.”

“We generated $9.9 billion in cash flow from operations and returned an additional $7.8 billion in cash to shareholders through dividends and share repurchases during the September quarter, bringing cumulative payments under our capital return program to $36 billion,” said Peter Oppenheimer, Apple’s CFO.

Apple is providing the following guidance for its fiscal 2014 first quarter:
revenue between $55 billion and $58 billion
gross margin between 36.5 percent and 37.5 percent
operating expenses between $4.4 billion and $4.5 billion
other income/(expense) of $200 million
tax rate of 26.25 percent

Apple will provide live streaming of its Q4 2013 financial results conference call beginning at 2:00 p.m. PDT on October 28, 2013 at www.apple.com/quicktime/qtv/earningsq413. 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 other 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 29, 2012, its Form 10-Q for the quarter ended December 29, 2012, its Form 10-Q for the quarter ended March 30, 2013, its Form 10-Q for the quarter ended June 29, 2013, and its Form 10-K for the year ended September 28, 2013 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.

4 thoughts on “Apple Puts Nearly 50 Million More E-Reading Devices Into Readers’ Hands in Fourth Quarter

  1. Pingback: Publishing Opinions | Apple Puts Nearly 50 Million More E-Reading Devices Into Readers’ Hands in Fourth Quarter

  2. Michael W. Perry

    It’s great for publishing that Apple’s putting so many more ebook reading devices out there, particularly since it has become Amazon’s prime competitor.

    But Apple needs to give its iBooks team more resources. Finally coming up with a Mac OS X version of iBooks is great, but why isn’t it available for early version of OS X? There are a lot of school-aged kids with older Macs that can’t run Mavericks. And when will there be a Windows version? There’s iTunes for Windows. Why isn’t there an iBooks?

    I would add that dealing with the iBooks team is night-and-day better than dealing with Amazon. Apple is flexible and lets authors do things their own way. Amazon has an obsessive-compulsive disorder that makes it think it ought to be controlling every aspect of publishing.

    * Apple lets authors and publishers submit their own book sample. Amazon apparently thinks books only exists as novels and arbitrarily creates a sample from the front of a book.

    * Apple plays a flat 70% royalty across its entire price range. Amazon radically alters royalty rates based on what it thinks book prices ought to be. The result is higher prices for speciality books.

    * Apple charges no download fees based on file size, which encourages visually rich books. Amazon charges quite hefty download fees, apparently because it doesn’t care if books are drab and dull.

    In short, while Apple is doing the ebook market a lot of good, it could be doing more.

    –Michael W. Perry, Inkling Books

    Reply
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